Meta rolls out AI tools across WhatsApp/IG/Messenger as Zuckerberg pushes the AI pivot. Zuckerberg, 40, co-founded Facebook; runs Meta as CEO/chair.
Meta, the owner of Facebook and Instagram, is being sued by New Mexico prosecutors for allegedly failing to disclose known risks of social media addiction and child exploitation. The trial examines internal research and Meta’s response to these issues, with CEO Mark Zuckerberg testifying about platform safety and corporate priorities.
Leaders like BlackRock's Larry Fink warn that AI's growth could deepen economic inequality, benefiting a few large companies and investors. Concerns about a potential bubble and market risks are rising as AI investments surge, with new startups like LeCun's AMI Labs aiming to develop more advanced AI systems.
As of March 13, 2026, Meta has delayed the launch of its new AI model, Avocado, to May after internal tests showed it underperformed compared to Google's latest Gemini 3.0. Meanwhile, Meta acquired Moltbook, a social platform for AI agents, integrating its founders into Meta's AI research division to advance AI agent technology.
In late March and early April 2026, juries in New Mexico and California found Meta liable for harming children through addictive platform design and failure to protect against sexual exploitation. Meta was ordered to pay $375 million in New Mexico and $4.2 million in California, alongside Google’s $1.8 million penalty. These landmark rulings challenge legal protections like Section 230 and signal a shift toward greater accountability for social media companies.
On March 24, 2026, a New Mexico jury found Meta liable for violating state consumer protection laws by failing to protect children on its platforms, ordering $375 million in penalties. The verdict follows a six-week trial and an undercover investigation revealing Meta concealed risks of child exploitation. Meta plans to appeal; a second trial phase in May may impose further penalties and platform changes.
A Los Angeles jury has found Meta and Googles YouTube negligent for designing addictive features that harmed a now-20-year-old plaintiff, awarding $3 million in compensatory damages and sending jurors back to consider punitive damages. The decision follows a separate New Mexico verdict that has ordered Meta to pay $375 million for child-safety violations.
The US government is advancing its AI strategy with significant industry backing, including a new $100 million initiative led by the Innovation Council Action, which aims to influence policy and support Trump-aligned efforts. Meanwhile, AI's role in military and ethical debates continues to grow.
Roblox is launching new age-based accounts in June to improve safety for children, following legal actions and government concerns over harmful content and grooming. The platform aims to restrict access and enhance parental controls, but faces ongoing lawsuits alleging negligence and harmful effects on youth mental health.
The UK government has been engaging social media companies to improve online safety for children. A consultation has received nearly 50,000 responses, with ongoing discussions about potential restrictions, including an Australia-style ban for under-16s. The government is considering measures to limit addictive features and AI chatbots, with decisions expected soon.
California has qualified a proposal for a billionaire wealth tax, which supporters say will fund healthcare and education. Opponents warn it will trigger a mass exodus of the wealthy, leading to significant job and revenue losses. The measure now faces a voter referendum in November 2026.
Sergey Brin has mobilized against California’s proposed 5% billionaire tax, citing his family’s escape from socialism. He has spent tens of millions through Building a Better California, opposed the tax, and has relocated assets out of California as he backs efforts to defeat the measure ahead of the November ballot.
China's National Development and Reform Commission has ordered the unwinding of Meta's $2 billion acquisition of AI startup Manus, saying it is prohibiting foreign investment in the project. Manus had relocated to Singapore in 2025; Meta has integrated Manus teams into its Singapore office and said the transaction complied with law. The decision is sharpening US–China tech separation.
The California chapter of SEIU-UHW has backed a billionaire tax aimed at raising about $100 billion to fund healthcare and education. Supporters say the measure will offset federal cuts; critics warn it could prompt mass exodus of ultra-wealthy residents and harm job growth if approved for the November ballot.
Meta has reported a milestone quarter with revenue up 33% to $56.31 billion and earnings of $10.44 per share in Q1. The company cites momentum across its apps and the first model from Meta Superintelligence Labs, while guiding for Q2 revenue of $58–$61 billion and capital expenditure up to $125–$145 billion as it expands AI infrastructure and talent; headcount stands at about 78,000 after a 10% layoff previously.
New Mexico has pressed for a remedies phase to impose sweeping changes on Meta platforms, seeking a public nuisance finding and up to $3.7 billion in support for child-safety programs and enforcement. The phase follows a March verdict that Meta harmed children and ordered $375 million in damages.
European startups are launching new, independent social networks as concerns over U.S. platforms grow. Projects like Croatia-based eYou, W, Eurosky, Bulle, and Monnett are positioning as healthier, Europe-built alternatives amid debate on design practices, moderation, and data use. Investors report cautious early traction but face a crowded, competitive market.
Tech firms are cutting thousands of roles as AI surges influence across operations. Wix, Meta, LinkedIn, Cloudflare and others cite AI-driven efficiency and currency shifts as drivers of restructuring, with severance and AI-focused reassignments underway.
A consortium-backed safety institute in Europe will test AI products for harms to children, while the US weighs new vetting and export-control policies as AI labs race ahead. Separate reports show rising use of shadow AI in workplaces and ongoing national-security deals over AI in defence.
The White House has paused an executive order creating a voluntary framework for AI developers to engage with the U.S. government before releasing advanced models. The delay follows pressure from tech leaders and internal concerns about safety and speed, with lawmakers and industry players weighing safety guardrails against innovation.
Meta has settled with Breathitt County School District in Kentucky over claims that its platforms fuel addictive behavior harming students. Terms are undisclosed; the suit sought more than $60 million for a 15-year mental health program. Settlements with TikTok, Snap and YouTube precede this accord, while other bellwether trials are scheduled.
The EU is advancing a technology-sovereignty package to boost domestic semiconductors, cloud computing, and data-center capacity, aiming to reduce dependence on non-European tech providers. The plan faces Parliament and Council review and references a broader push to secure critical digital services.
Meta has expanded its AI agent capabilities, introducing Meta Business Agent across WhatsApp, Messenger and Instagram. The tools are designed for customer inquiries, product recommendations and appointment bookings, bundled within a Meta One subscription tier. The move positions Meta to monetize AI beyond advertising amid growing competition in AI agents.