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Meta Shifts From Metaverse to AI-First Media
29 Jan 2026- Zuckerberg shifts Meta from metaverse to AI-first social experiences, promoting AI-generated immersive media (Meta AI "Vibes"), while Reality Labs faces losses and job cuts.
29 Jan 2026
Meta CEO Mark Zuckerberg signaled a clear pivot from metaverse ambitions to an AI-first vision for social media on Meta’s Q4 2025 earnings call. He argued that media formats evolve with technology — “We started with text, and then moved to photos… and then moved to video… Soon, we’ll see an explosion of new media formats that are more immersive and interactive, and only possible because of advances in AI.” Zuckerberg said Meta’s apps will shift from being “algorithms that recommend content” to experiences where AI greets users, understands them, and “generate[s] great personalized content.”
Meta is already experimenting: the Meta AI app includes a “Vibes” feed of short AI-generated videos, and Zuckerberg hinted at tools that let users create worlds or games from a prompt and make videos interactive — e.g., tap a video and “jump into it” to experience it differently. He framed Reality Labs (VR/metaverse) as complementary but not central, noting the unit’s $6.02 billion operating loss in Q4 2025; Meta recently cut at least 1,000 Reality Labs jobs and closed three VR studios.
Financially, Meta reported $59.9 billion revenue and $22.8 billion net income for Q4 2025. Zuckerberg told investors Meta AI presents monetization opportunities via “subscriptions and advertising,” aligning with reports that premium AI features may be placed behind a paywall. The company appears to be betting that AI-generated, interactive media will be the next major social format.
Source
Meta CEO Mark Zuckerberg signaled a clear pivot from metaverse ambitions to an AI-first vision for social media on Meta’s Q4 2025 earnings call. He argued that media formats evolve with technology — “We started with text, and then moved to photos… and then moved to video… Soon, we’ll see an explosion of new media formats that are more immersive and interactive, and only possible because of advances in AI.” Zuckerberg said Meta’s apps will shift from being “algorithms that recommend content” to experiences where AI greets users, understands them, and “generate[s] great personalized content.”
Meta is already experimenting: the Meta AI app includes a “Vibes” feed of short AI-generated videos, and Zuckerberg hinted at tools that let users create worlds or games from a prompt and make videos interactive — e.g., tap a video and “jump into it” to experience it differently. He framed Reality Labs (VR/metaverse) as complementary but not central, noting the unit’s $6.02 billion operating loss in Q4 2025; Meta recently cut at least 1,000 Reality Labs jobs and closed three VR studios.
Financially, Meta reported $59.9 billion revenue and $22.8 billion net income for Q4 2025. Zuckerberg told investors Meta AI presents monetization opportunities via “subscriptions and advertising,” aligning with reports that premium AI features may be placed behind a paywall. The company appears to be betting that AI-generated, interactive media will be the next major social format.
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