Meta's Muse passes 10 million downloads, but costs outrun revenue (opens the source in a new tab)
- Zuckerberg said on Meta's earnings call that more than 10 million people in the US and Canada have downloaded Muse, its AI agent AI software that takes actions on its own, like booking, buying or moving money, not just answering questions. app, far faster than ChatGPT's app reached that mark.
- WSJ columnist Asa Fitch argues that even rapid subscriber growth would cover only a slice of Meta's AI spending, which analysts expect to approach $200 billion next year; free cash flow has turned negative and debt has climbed.
- Meta also created a new class of nonvoting shares, seen as a step towards raising equity, and its stock fell sharply on Thursday. Fitch adds that low trust in Meta could limit what users let an agent do.
- 10m+
- Muse downloads, US and Canada
- ~$200bn
- capex analysts expect next year
Why it matters Agents that shop and book for users are the next battleground, and Meta got there first. Being first matters less if users won't hand over passwords while the spending clock keeps running.
Other side Meta's ad business still grew strongly last quarter, and its reach across Instagram and WhatsApp is unmatched. Heavy early spending is how platforms are won; judging returns six weeks in may be premature.