Meta shifts from metaverse dreams to AI-driven social feeds and interactive content

Meta Platforms is signaling a pivot away from its former metaverse ambitions toward an AI-generated social experience. In a recent earnings call, CEO Mark Zuckerberg described AI as the next major media format and asserted that feeds will become “more immersive and interactive.” He summed up the progression: text, then photos with cameras, then video as networks became faster, and now an explosion of new media formats unlocked by advances in AI. “Soon, we’ll see an explosion of new media formats that are more immersive and interactive, and only possible because of advances in AI,” he said. 

Zuckerberg argued that today’s apps feel like algorithms that merely “recommend content,” but that won’t be the case forever as Meta builds AI that can “understand” users, present content they’ll like, and generate personalized experiences. He has long teased AI-infused social media as a way to broaden the platform’s content ecosystem, noting that AI could make content creation and remixing easier. Meta has already begun testing this vision with a new “Vibes” feed in the Meta AI app, which offers a stream of short, AI-generated videos. 

During the call, Zuckerberg floated a future where users can design a world or game with a prompt and then share it with friends, and where videos themselves become interactive. “There’s definitely a version of the future where any video that you see, you can tap on and… experience it in a more meaningful way,” he said. The focus on AI appears to complement, rather than replace, Meta’s ongoing VR investments. He argued that VR and Horizon Worlds would “pair well with these AI advances,” potentially bringing more immersive experiences to mobile devices. 

Reality Labs, Meta’s VR unit, reported a $6.02 billion operating loss in the last quarter of 2025. Earlier in the month, Meta laid off at least 1,000 Reality Labs employees and shuttered three VR studios. Despite the VR setbacks, Meta posted revenue of $59.9 billion for Q4 2025 and a net income of $22.8 billion. Executives indicated plans to monetize Meta AI, signaling opportunities for “subscriptions and advertising” as part of a paid feature strategy, aligning with reports that high-end AI features could be behind a paywall. 

In this broader pivot, Meta also signaled a potential expansion of revenue streams tied to its AI efforts, underscoring the company’s intent to blend AI capabilities with existing ads and subscription models. As investors digest the shift, the company emphasizes that AI-driven feeds and interactive content could become central to how users discover and engage with media on Meta’s platforms. Follow for updates on how these AI features evolve and what they mean for creators and advertisers alike.