What happens to Neo after “The Matrix Revolutions”?
Neo dies- in the Matrix and in “real life.” The machines took Neo away and probably gave him a respectful, hero’s burial in the matrix. Neo saved the machines from Smith’s take-over, so they were grateful to him. Zion is liberated and free from the virtual prison they were forced into. The Oracle mediated with the machines and they agreed that all of Zion would be freed and more citizens would be freed from the matrix. They agreed to keep peace as long as it was possible. Is the matrix real? Well, for all intent and purposes, in the movie it’s supposed to be virtual world where extraordinary things happen. The “reality” of the matrix stems from the fact that if you die in the matrix, you die for real- so, to the movie characters, it’s real.