In a significant strategic pivot, Meta CEO Mark Zuckerberg is signaling a decisive shift from the ambitious, albeit costly, metaverse vision towards a future dominated by artificial intelligence. Forget sprawling virtual worlds for a moment; the new frontier, according to Zuckerberg, is an AI-generated social feed designed to be more immersive, interactive, and deeply personal than anything seen before.
The Dawn of Immersive AI Feeds
During a recent earnings call, Zuckerberg articulated his conviction that AI is poised to become the next monumental media format. He drew a clear evolutionary line: from text, to photos with camera-equipped phones, to video enabled by faster mobile networks. The next leap, he asserts, will be an “explosion of new media formats that are more immersive and interactive, and only possible because of advances in AI.” This vision promises a radical transformation of how users engage with content across Meta’s vast ecosystem.
Beyond Algorithms: AI That ‘Understands’ You
Zuckerberg candidly acknowledged that current applications often “feel like algorithms that recommend content.” However, this is set to change dramatically. Meta’s future apps, he explained, will feature AI that truly “understands” users, capable of not only serving up preferred content but also generating “great personalized content” on demand. This isn’t a distant dream; Meta has already taken steps in this direction, notably with the launch of its “Vibes” feed within the Meta AI app, offering users a curated stream of short, AI-generated videos.
Crafting Worlds and Interactive Experiences
The scope of Meta’s AI ambitions extends beyond personalized feeds. Zuckerberg hinted at groundbreaking new formats, including the ability for users to create entire worlds or games simply by providing a prompt, which can then be shared with friends. Furthermore, the concept of interactive video is on the horizon. “There’s definitely a version of the future where any video that you see, you can tap on and jump into it and… experience it in a more meaningful way,” he elaborated, painting a picture of deeply engaging, dynamic media.
The Metaverse Takes a Backseat
Notably absent from the earnings call were specific goals for the metaverse. Instead, Zuckerberg reframed Meta’s substantial investments in virtual reality (VR) and Horizon Worlds, suggesting they would now “pair well with these AI advances,” primarily by bringing these enhanced experiences to people “through mobile.” This reorientation comes amidst significant challenges for Meta’s Reality Labs, the division encompassing its metaverse efforts, which reported a staggering $6.02 billion operating loss in the final quarter of 2025. The division also saw at least 1,000 layoffs and the closure of three VR studios earlier this month, underscoring the shift in corporate priorities.
Meta’s Financial Health and AI Monetization
Despite the metaverse’s woes, Meta’s overall financial performance remains robust, with the company reporting an impressive $59.9 billion in revenue and a net income of $22.8 billion for the final quarter of 2025. Looking ahead, Meta plans to leverage its AI advancements to open new revenue streams. Zuckerberg informed investors of forthcoming opportunities for “subscriptions and advertising” within Meta AI, aligning with earlier reports suggesting premium AI features could be placed behind a paywall. This indicates a clear path towards monetizing the company’s significant AI investments.
As Meta charts its course towards an AI-centric future, the implications for social media, content creation, and user interaction are profound. Zuckerberg’s unwavering commitment to AI suggests a new era where technology doesn’t just recommend content, but actively creates and personalizes our digital realities.
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