Meta’s Agentic Pivot: The 2026 Shift from Metaverse to Autonomous AI
As of early January 2026, Meta Platforms has finished a massive change in strategy. The company has moved away from its earlier focus on the “metaverse” and toward a system built on autonomous artificial intelligence and wearable hardware. Analysts call this shift the “Agentic Pivot.” It represents the most significant evolution for the company since it rebranded in 2021. By prioritizing “superintelligence” and practical AI tools over virtual worlds, Meta has calmed investor worries and established itself as a leader in the next era of computing.
The Manus AI Deal and Global Tensions
The biggest part of this news is the acquisition of Manus AI. This startup is based in Singapore and specializes in general-purpose AI agents. Meta announced the deal in late December 2025 and finalized it as 2026 began. The value is between $2 billion and $3 billion.
Traditional Large Language Models mostly predict text, but Manus AI is different. It uses an “Action Engine” powered by a “CodeAct” framework. This allows the AI to work inside virtual machines on its own. It can browse the live web, write code in real-time, and handle complex jobs like booking travel or managing supply chains without any human help.
However, as of January 8, 2026, the deal faces political challenges. Chinese officials are reviewing the purchase to see if it violates technology export rules. Manus started in Beijing before moving to Singapore in early 2025. The Chinese commerce ministry is checking if the relocation of staff and technology required a license. In the United States, the Committee on Foreign Investment might also investigate the deal. Despite these issues, Meta plans to add the Manus system to WhatsApp and Instagram. The goal is to turn these social platforms into transactional “super-apps.”
New Private Models: Mango and Avocado
Meta historically shared its work through open-source development, but that has changed. The company has revealed a new generation of closed-source AI models named “Mango” and “Avocado.” These were created by the new Meta Superintelligence Labs to compete directly with OpenAI and Google.
Project Avocado is set for release in Q1 2026. It is a model focused on reasoning, coding, and using tools. It acts as the “brain” for agentic workflows and can break down big goals into smaller tasks.
Project Mango focuses on creating high-quality visuals to rival OpenAI’s Sora. It uses “world models” to understand physical laws like gravity and cause-and-effect. This allows it to make physically realistic, long videos. This move toward private models shows that Meta wants to secure a commercial advantage.
Changes in the Metaverse and Wearables
While AI grows, the original metaverse vision faces a 30% budget cut. The Reality Labs division has lost over $70 billion since 2021. It is now reorganizing to focus on immediate opportunities in wearable AI.
The main success here is the Ray-Ban Meta smart glasses. Sales for these glasses tripled year-over-year in 2025. This popularity caused a supply shortage. In January 2026, Meta paused the international rollout of the “Display” model to markets like the UK, France, and Canada because demand in the U.S. was too high.
Meta is also working on the “Neural Band.” This wrist device uses electromyography to turn muscle signals into digital commands. It lets users control screens with small finger movements. At CES 2026, Meta showed a new “Teleprompter Mode” that allows users to read speech notes through their glasses.
Apps and Income
Meta’s main platforms are still its financial engine. Family Daily Active People reached 3.54 billion by the end of 2025.
Threads has become a stable platform with 150 million daily active users and 400 million monthly active users. Meta is rolling out ads globally on Threads.
WhatsApp is growing beyond messaging into a business hub. In India, it now supports “scan and pay” features for QR codes using smart glasses.
In advertising, the Advantage+ AI suite now automates ad creation and targeting. It has reached a $60 billion annual run rate.
Money and Regulations
The financial scale for 2026 is huge. Meta projects capital expenditures will reach $100 billion in 2026. This money will fund the data centers needed for Llama 4 and Llama 5. Revenue grew 26.2% to $51.24 billion in the most recent quarter, but investors are still cautious about the high spending.
Meta also faces strict regulations in several places.
In Australia, a law enforced on December 10, 2025, bans users under 16 from Facebook, Instagram, and Threads. This forces Meta to use facial age analysis and digital ID checks.
In the European Union, the European Commission started an antitrust investigation in December 2025. They are looking into whether WhatsApp unfairly blocks third-party AI providers.
In the United States, Meta won a court victory against the FTC regarding its past purchases of Instagram and WhatsApp late in 2025. However, it still faces scrutiny over its control of the digital ad market.
Conclusion
As 2026 continues, Meta Platforms has effectively moved beyond being just a “social media company.” It has become a powerhouse for AI infrastructure and hardware. Moving from creating content to taking action through autonomous agents is a major change in how humans use computers. The costs are high and the laws are strict, but Meta controls the advanced AI models and the hardware to run them. This gives the company a strong advantage in the race for superintelligence.
Bullish
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