Meta’s newest AI chatbot, Muse, has made more than five million downloads in its first month, and the company’s quarterly earnings rose 28% from the same period last year. Yet when Meta’s CEO, Mark Zuckerberg, opened the company’s 2026 Meta Connect event, he didn’t name Facebook or Instagram – the twin engines that got Meta to a $2 trillion valuation – but instead highlighted a line‑up of AI‑driven products and a fresh approach to privacy.
During the hour‑long keynote, Zuckerberg told an audience of analysts that building “is an act of love” and that the company’s new titles – the Muse agentic chatbot, a Tamagotchi‑style wear‑able and a line of smart‑glasses – will “place personal super‑intelligence” in users’ hands. The remarks came amid a wave of legal actions that have accused Meta of deliberately making its platforms addictive to young people and of leaking personal data in the Cambridge Analytica scandal.
Last year’s Pew Research Center poll found that two‑thirds of Americans had an unfavourable view of Zuckerberg, and industry disputes continue. A New Mexico jury now ruled that Meta lied about how Facebook used personal information, while the company faced a $942 million fine after a state court found it a “public nuisance” for child safety failures. To stave off further blow‑back, Meta settled a multibillion‑dollar deal with 48 states that will enforce time‑limits and data‑usage restrictions for teenagers, but the firm still denies wrongdoing and is appealing the verdicts.
Despite these setbacks, user metrics remain solid. Instagram, WhatsApp and other Meta apps grew 3% year‑on‑year, and ad revenue – Meta’s cash cow – topped $60 bn for the second quarter. Leaders such as Forrester’s Kate Winick say the company will still own the emerging smart‑glasses category, whereas others warn that privacy concerns could erode that dominance. Zuckerberg has highlighted a “state‑of‑the‑art privacy and security framework” for Muse, including a cloud‑based virtual machine to isolate user data so even Meta can’t see it.
The contrast between trust and convenience is stark. Some users say they will hand over their credit‑card, email and purchase histories for Muse’s convenience; others, like Brooke Istook at the Heat Initiative, argue that “consumers know Meta has problems” and will not volunteer their most sensitive data. Analysts agree that if users perceive the trade‑off as worthwhile, they’ll stay, but the firm’s $83.7 bn debt load adds pressure to turn product popularity into sustainable profits.
In the end, Meta’s business appears to be riding high on its technology offers, while its future depends largely on whether it can rebuild consumer trust. The next few quarters will test whether its “Teflon” image holds against a surge of negative headlines or if the company’s rise is ultimately a fragile veneer over a damaged brand.
