Meta CEO Mark Zuckerberg says the company will spend up to $135 billion on AI this year, which is almost twice the $72 billion it spent last year on AI projects and infrastructure.
The news comes a few weeks after Meta laid off around 1000 employees working within its Reality Labs division who worked on Quest VR headsets and the Horizon Worlds virtual social network.
In a recent earnings call, the Meta CEO said that he believed AI will be the next big media format and make feeds “more immersive and interactive.”
“We started with text, and then moved to photos when we got phones with cameras, and then moved to video when mobile networks got fast enough. Soon, we’ll see an explosion of new media formats that are more immersive and interactive, and only possible because of advances in AI”, said Zuckerberg.
He went on to say that the current generation of apps “feel like algorithms that recommend content”. In the future, Zuckerberg says Meta apps like Instagram, Facebook and Threads will have AI that “understands” users and show them “great personalised” AI generated content.
For a normal user, it may look like Instagram is showing you target content using an LLM-powered algorithm which is able to understand “people’s unique personal goals” and show ads accordingly.
In 2025, the Meta CEO had announced that Meta would be adding “another huge corpus of content” to its recommendation system as AI is making it “easier to create and remix.” Following this, the tech giant introduced the “Vibes” feed in the Meta AI app, which only features short AI generated videos.
AI is also helping Instagram increase the amount of time people spend on the platform. “Hundreds of millions of people are watching AI-translated videos every day,” said Meta CFO Susan Li.
Touching on the new AI-powered content format, Zuckerberg hinted that users may be able to create their own world or games using AI and share it with friends and family.
“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,”
During the call, the Meta CEO did not talk about Metaverse, but did say that the company investment in virtual reality will “pair well with these AI advances.”
In the last quarter of 2025, Meta said it generated $59,9 billion in revenue and is planning to monetise the Meta AI chatbot, telling investors that they there will be scope for “subscriptions and advertising”.
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