At the World Economic Forum in Davos, Nicola Mendelsohn, head of Meta’s global business group, warned that Europe’s stringent AI regulations have materially delayed the deployment of several of the company’s next-generation AI features. She noted that approval processes now take on average 60% longer than in the U.S., causing growing frustration among corporate partners who had anticipated simultaneous launches across major markets. Mendelsohn cited internal data showing a 25% drop in adoption rates for new AI-powered advertising tools in EU member states versus comparable launches elsewhere, a gap Meta plans to narrow through direct engagement with regulators over the coming quarters.

Meta Platforms’ newly established AI research division reported completion of its first two high-profile large language models this month, according to CTO Andrew Bosworth. These internal releases mark the culmination of a recruitment drive that grew the lab’s headcount from zero to over 300 in under eight months. Meanwhile, Meta continues to deploy its planned $600 billion commitment to AI infrastructure, having already signed three hyperscale data-center deals across the U.S. and Europe. Management expects these investments to underpin model training capacity that could reach over 10 exaflops by year-end, positioning Meta to compete directly with leading cloud providers for enterprise AI workloads.

Meta’s Threads app has now overtaken its rival X in monthly active mobile users, marking the first time a non-parental app has achieved that milestone for Meta in its social media portfolio. Concurrently, Sensor Tower data shows that more than 50% of all Instagram advertising placements occurred within Reels during 2025, up sharply from 35% in 2024. In the U.S., Reels accounted for 46% of time spent on Instagram, a 9-point increase year-over-year, while on Facebook the metric rose to 29%. Although Reels monetization remains approximately 20% lower than Instagram’s main feed, Zuckerberg highlighted that the format’s rising annual advertising run rate—recently affirmed at over $50 billion—continues to drive overall revenue growth for the social network segment.

Meta’s Reality Labs division announced last week the layoff of 1,500 employees globally, including 331 positions in Washington state alone. According to filings, the most affected sites are the Redmond office followed by Bellevue’s Spring District facility. These cuts come just weeks after the company shuttered several unprofitable AR/VR pilot programs, reflecting a strategic shift away from loss-making Metaverse projects toward core AI and social media initiatives. Investor concerns persist over the division’s cumulative operating losses, which exceeded $15 billion over the past two years, prompting analysts to question the pace and scale of any future spending in immersive technology.