From Sci-Fi to Reality: How XR Is Finding Its Moment according to Ori Inbar
When Ori Inbar read Rainbow’s End by Vernor Vinge - a novel imagining a near-future society where augmented reality is seamlessly embedded in everyday life - it sparked something. “It became my mission to bring this future closer,” he shared during a chat at AWE Vienna last year. Years later, that once-speculative vision is starting to materialize.
We talked about the evolving landscape of XR post-2023, the interplay between AI and XR, and what XR needs now to evolve further.
A Turning Point: Apple Vision Pro and the Mood Shift
After a challenging 2023, where attention and funding drifted almost entirely to AI, the XR industry was feeling sidelined. “People were saying XR was dead,” Ori recalled. But Apple’s Vision Pro launch in January 2024 flipped the narrative. “It reignited the entire ecosystem. Apple entering the space made it clear: this isn’t a toy anymore.”
The result? A renewed sense of urgency and legitimacy across the industry. Major players like Meta, HTC, Sony, Samsung, and Google began stepping up again pushing new devices, revisiting strategies, and attracting both media and investor interest.
XR + AI: A New Power Couple
Despite initial fears that AI would overshadow XR, Ori believes the opposite is happening: “AI ❤️ XR - they actually make each other stronger.” AI is helping overcome XR’s biggest pain points: content creation, usability, and personalization. From generative 3D tools to smarter avatars and computer vision enhancements, AI is accelerating XR’s development, not replacing it.
Snapchat’s recent 10% year-over-year growth in AR usage - attributed to its AI-powered filters - is just one proof point. “We’re seeing this convergence everywhere. At the expo, nearly every booth integrates AI in some way.”
What XR Needs Now: Relevant Content
While hardware has made significant leaps, Ori argues that the biggest barrier to mainstream adoption is still content. “The devices are good enough. What we need is content that matters to everyone - beyond games and gimmicks.”
Though gaming remains a visible driver (with one in four US teens now regularly using VR), the enterprise market already accounts for 71% of XR’s global value. Even Apple and Meta are investing in business-focused XR applications. But to grow further, the industry needs to serve broader use cases - education, wellness, productivity, social connection.
Developers and Investors Are Returning
One of the most encouraging signs: developers are showing up in droves. Ori estimates the global XR dev community has doubled in just two years -from 1 million to over 2 million. “Tools are easier, platforms are more open, and there’s real money to be made,” he said. Some small indie teams on the Meta Quest store have earned millions with minimal funding.
Investors are noticing. Meta’s Lifestyle Apps Accelerator and a16z’s Speedrun program are two major initiatives aimed at funding XR (and AI) innovation beyond gaming. “These programs are giving people the boost they need to build the next generation of apps - not just for fun, but for everyday life.”
Final Thoughts
Ori’s message is clear: XR isn’t a niche anymore. It’s evolving quietly yet quickly, and with the right mix of content, community, and creativity, the sci-fi future he once read about might just arrive sooner than expected.
On Thursday April 24th, we are chatting with Ori at our monthly Tech Espresso.
He will attempt to answer the question: is XR ready to go mainstream?