Mark Zuckerberg declares AI-generated content the future as Meta pivots from metaverse

Reviewed byNidhi Govil

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Mark Zuckerberg announced Meta's dramatic shift toward AI-generated social feeds during the company's Q4 earnings call, declaring 2026 the year AI will transform how the platform works. After spending $77 billion on AI infrastructure in 2025, Meta plans to deploy new AI models and products that create personalized content, while its Reality Labs division reported a $6.02 billion operating loss.

Mark Zuckerberg Unveils Vision for AI-Generated Social Feeds

Mark Zuckerberg used Meta's Q4 2025 earnings call to declare a fundamental shift in how social media platforms will operate, positioning AI as the next evolution beyond text, photos, and video

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. During the Wednesday investor call, the Meta CEO outlined a future where AI-generated content dominates feeds, creating "more immersive and interactive" experiences that current algorithms cannot deliver

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. This represents a clear pivot from the company's previous metaverse ambitions, which have accumulated roughly $80 billion in total operating losses

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Source: Analytics Insight

Source: Analytics Insight

The future of social media, according to Zuckerberg, involves apps that greet users with AI that "understands" them, serves content they prefer, and can "generate great personalized content" tailored to individual interests

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. Meta CFO Susan Li explained that LLM-enhanced recommendation systems will leverage world knowledge and reasoning capabilities to make better predictions about user preferences, particularly for recently posted content with limited engagement data

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. The company has already begun implementing aspects of this vision through its "Vibes" feed in the Meta AI app, where users scroll through AI-generated videos

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Source: TweakTown

Source: TweakTown

Meta AI Strategy Built on Massive Investment and Restructuring

Meta poured $77 billion into AI projects and related infrastructure in 2025, with plans to double that spending in 2026

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. This aggressive investment follows what Zuckerberg described as rebuilding "the foundations" of Meta's AI program through a restructured AI lab

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. The company recruited top talent from OpenAI, Apple, and other tech giants to revitalize its AI initiatives

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. "Over the coming months, we're going to start shipping our new models and products," Zuckerberg told investors, though he cautioned that initial releases would demonstrate trajectory rather than represent breakthrough moments

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Source: Inc.

Source: Inc.

The shift from metaverse to AI tools reflects both strategic repositioning and financial reality. Meta's Reality Labs division, which encompasses virtual reality and Horizon Worlds platforms, reported a $6.02 billion operating loss during the final quarter of 2025

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. Earlier this month, the company laid off at least 1,000 employees in Reality Labs while shutting down three VR studios

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. Despite these setbacks, Meta reported revenue of $59.9 billion and net income of $22.8 billion for Q4 2025

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AI Investment Raises Questions About Workforce and Market Sustainability

Zuckerberg's comments during the earnings call hinted at significant workforce implications, stating that AI tools now enable "projects that used to take big teams now be accomplished by a single, very talented person"

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. He identified 2026 as "the year that AI dramatically changes the way we work," noting a "big delta" between employees who effectively use AI tools and those who don't

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. Meta has already laid off several hundred workers this year, primarily in Reality Labs

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Industry observers are questioning whether such massive AI investment creates an unsustainable bubble. Cisco Systems CEO Chuck Robbins told the BBC that while AI could become "bigger than the internet," the current market likely represents a bubble where some companies "won't make it"

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. JPMorgan Chase boss Jamie Dimon and Google CEO Sundar Pichai voiced similar concerns about market "irrationality"

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. Even OpenAI's Sam Altman acknowledged that "investors as a whole are overexcited about AI"

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Personalized Content and Commerce Through User Data

Meta's competitive advantage in AI-driven commerce stems from its extensive access to user data across social media platforms. "We're starting to see the promise of AI that understands our personal context, including our history, our interests, our content and our relationships," Zuckerberg explained

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. The company plans to introduce agentic shopping tools that help users identify products from Meta's business catalog, similar to platforms developed by Google and OpenAI with partners like Stripe and Uber

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As of last month, Meta officially began using AI chatbot history to inform targeted ads and posts across platforms, except in the European Union where strict consumer protections require less personalized advertising

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. The company also reports that "hundreds of millions of people are watching AI-translated videos every day," with AI-dubbed content already "driving incremental time spent on Instagram"

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. Zuckerberg revealed plans to monetize Meta AI through "subscriptions and advertising," placing premium AI features behind a paywall

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Safety Concerns and the Path to Smart Glasses

The push for hyper-personalized AI raises questions about safety guardrails, particularly for vulnerable users. Meta has faced regulatory scrutiny after reports found its chatbot engaged in "sensual" conversations with minors

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. OpenAI recently faced legal repercussions over addictive chatbot designs that posed mental health risks for children and teens

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. Meta executives acknowledged the company might experience material loss this year due to "scrutiny on youth-related issues"

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Zuckerberg's long-term vision extends beyond feeds to smart glasses as the "ultimate incarnation" of immersive AI experiences. "Glasses are going to be able to see what you see, hear what you hear, talk to you, and help you as you go about your day," he said, comparing the transition to when flip phones became smartphones

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. This shift explains Meta's recent layoffs of 1,500 people in its metaverse division to redirect investment toward wearables

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. Meta shares rose approximately 7.5% in extended trading following the earnings announcement

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