Claude Dethrones ChatGPT, Smart Glasses Lead MWC, AI Layoffs Hit Block

AI reshapes tech as smart glasses dominate Mobile World Congress 2026 and Anthropic loses Pentagon contract.

Published on Mar. 6, 2026

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The 20th Mobile World Congress in Barcelona showcased the rise of smart glasses, with companies like Google, Alibaba, and XGIMI unveiling innovative new models. Meanwhile, Dubai-based XPANCEO demonstrated progress towards fully integrated smart contact lenses. In other news, Block (the company behind Square, Cash App, and Afterpay) laid off 4,000 employees due to the impact of AI, and Anthropic lost a Pentagon contract, leading to a surge in popularity for its AI model, Claude, which dethroned ChatGPT on the App Store. OpenAI also released an updated version of GPT, and Utopia Studios launched a new cinematic AI video model called PAI. Finally, Pico is making a move to fill the enterprise XR void left by Meta's pullback.

Why it matters

These developments highlight the rapid advancements in AI and extended reality (XR) technologies, which are reshaping various industries, from consumer electronics to enterprise applications. The smart glasses and smart contact lens innovations showcase how these technologies are becoming more integrated into our daily lives, while the AI model competition and corporate restructuring illustrate the significant impact AI is having on the tech landscape.

The details

At MWC 2026, smart glasses from companies like Google, Alibaba, and XGIMI were the main attraction, featuring capabilities like real-time translation, AI integration, and streamlined navigation. Dubai-based XPANCEO also demonstrated progress towards a fully integrated smart contact lens that can display information, monitor health, and provide wireless power. Meanwhile, Block (the company behind Square, Cash App, and Afterpay) cut 4,000 jobs, or 40% of its workforce, due to the impact of AI. This came after Anthropic lost a Pentagon contract for refusing to allow its AI models to be used for mass surveillance and autonomous weapons, leading to a surge in popularity for its AI model, Claude, which dethroned ChatGPT on the App Store. OpenAI also released an updated version of GPT, and Utopia Studios launched a new cinematic AI video model called PAI. Finally, Pico is making a move to fill the enterprise XR void left by Meta's pullback from the market.

  • MWC 2026 took place in Barcelona.
  • Anthropic lost its Pentagon contract in early March 2026.
  • OpenAI released GPT-5.3 Instant this week.
  • Utopia Studios launched public access to PAI this week.
  • Pico announced Project Swan, a new enterprise XR headset due in late 2026.

The players

Google

An American multinational technology company that specializes in Internet-related services and products.

Alibaba

A Chinese multinational technology company that specializes in e-commerce, retail, internet, and technology.

XGIMI

A Chinese technology company that specializes in the development and manufacturing of smart projectors and home theater systems.

XPANCEO

A Dubai-based company that is developing fully integrated smart contact lenses.

Block

An American financial services and digital payments company, formerly known as Square.

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What they’re saying

“We're already seeing that the intelligence tools we're creating and using, paired with smaller and flatter teams, are enabling a new way of working which fundamentally changes what it means to build and run a company.”

— Jack Dorsey, Founder and CEO of Block (Block)

What’s next

Pico plans to launch its new enterprise XR headset, Project Swan, in late 2026.

The takeaway

The rapid advancements in AI and XR technologies are reshaping various industries, from consumer electronics to enterprise applications. These developments highlight the need for companies to adapt to the changing technological landscape and explore new ways of working and innovating to stay competitive.