tasmād etad vyajāyata
tasmāt – from Śambhu; etad viśvam – this universe; vyajāyata – became; ahaṅkāra-ātmakam – imbued with the nature of false ego.
The world of false ego has been born from Śambhu. This is his function in relation to the living entities.
Another function of Śambhu is being described here. He is called the original form of false ego because this world of false ego was born from him. Thus Śambhu is the presiding deity of false ego. For example, it is stated in Śrīmad-Bhāgavatam (3.26.24):
The unmanifest aggregate material energy originates from Bhagavān’s spiritual potency, and it transforms into three types of false ego, which were imbued with the potency for activity at the time of creation. The mind, the senses and the life airs are born from these three modifications of false ego, namely false ego in goodness, false ego in passion and false ego in the mode of ignorance.
Therefore Śambhu is called the presiding deity of all false ego. Learned authorities have also called him Anantadeva. He is also the cause of matter, the senses and the mind.
The original form of pure existence in its transcendental constitutional state has no sense of self-conception separate from the Supreme Person Bhagavān. The symbol of separate self-conception, or the separate existence that emerges in this material world, is exemplified by the male generative capacity. This is a mundane reflection of the original pure spiritual existence. This liṅga, the emblem of the male generative capacity, is Ādi-Śambhu. He unites with the receptive principle, which is a transformation of Ramā-devī in the form of the yoni or womb of material existence. At this time, Śambhu is the material cause by dint of supplying the raw material substances for creation. When each universe is manifest from the gradual evolution of this state of existence, the rudra or destructive principle emerges from the existence of Śambhu. Although born from between the eyebrows of the puruṣa-avatāra Mahā-Viṣṇu, Śambhu remains as the epitome of false ego in all conditions.
An unlimited number of atomic conscious particles emerge from the spiritual rays of Paramātmā as the aggregate of the living entities. When they identify themselves as the servants of Bhagavān, they are of Vaikuṇṭha, and have no relationship with the world of māyā. When the living entity forgets this pure identity, he desires to become the enjoyer of māyā, and the false ego principle of Śambhu then enters his existence and produces within him the self-conception of being a separate enjoyer. Therefore, Śambhu alone is the principle underlying the world of false ego and the identification of the living entities with their material bodies.