After getting used to the "real world," Neo learns what happened to the world he though he knew, and how an artificial intelligence, known as the matrix, took control. He has also shown how the humans resisted the battle, and how they were now being grown as a power source to the machines. He also learned how to bend the rules of this artificial reality, such as moving faster than humanly possible, jumping tall buildings in a single bound, etc.
A visit to the oracle proved to be another key event in the movie. The children in the oracle's house bent the reality of the matrix, causing spoons to bend and wooden blocks to float in the air. Neo saw the flaws, and learned how to manipulate them by bending a spoon himself. The oracle told Neo that either he or Morpheus
was going to die, and that he wasn't the chosen one -- at least, not in this life time.
Shortly after this, Cipher, a member of Morpheus's crew, turns on the group. All die except Tank, Neo, Trinity, and Morpheus himself -- but Morpheus's mind is still trapped inside the matrix. Neo then makes up his mind to save his friend, even if it costs him his life.
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