In a call with investors following the company’s third-quarter results, Meta CEO Mark Zuckerberg said even as growth continues to be strong, the company is eyeing a larger user base in the next few years.

  • Zuckerberg said on the call that Muse’s engagement and retention have started strong, with around 25% of users engaging with it on a daily basis.
  • At present, Muse is most commonly used for shopping, with more than a quarter of users averaging purchases over $200. 
  • While Muse is currently compute-intensive to run, the goal is to improve its cost efficiency by more than 10x in the next year, which will help it become profitable, the CEO said. 

Meta Platform’s (META) Muse AI Agent has garnered over 10 million users in the U.S. and Canada since its launch on Sept. 8, CEO Mark Zuckerberg said.

In a call with investors following the company’s third-quarter results, Zuckerberg said even as growth continues to be strong, the company is eyeing a larger user base in the next few years. 

“On the compute side, we are building out the capacity (for Muse) to serve more than 1 billion people over the next few years,” he said.

Muse Gets Off To A Strong Start 

Zuckerberg said on the call that Muse’s engagement and retention have started strong, with around 25% of users engaging with it on a daily basis. He added that the earliest adopters have shown better retention the longer they use the AI agent.

“To put this in perspective, this is more than twice the level that Threads started at, or where we believe that other AI apps started at as well,” he said. 

At present, Muse is most commonly used for shopping, with more than a quarter of users averaging purchases over $200. 

Beyond shopping, users tend to engage with Muse for personal productivity and connecting to other services like email and calendar, Zuckerberg noted.

“Now that Muse has clear product-market fit, we are entering a new phase and a more operational phase that is focused on scaling it. The goals for this next phase play to many of Meta’s strengths. We need to do three things: scale the product, grow revenue, and optimize compute costs,” he said.

Cost, Revenue And Economics Of Muse 

The Facebook parent’s chief said that while the AI agent is compute-intensive to run, the goal is to improve its cost efficiency by more than 10x in the next year, which will help it become profitable. 

“If compute efficiency continues improving quickly for another few years, which we think is highly likely, then Muse will be highly profitable over multiple years,” he said.

Meanwhile, Zuckerberg noted that the average revenue per American family of app users is several hundred dollars annually, and that the company expects “Muse will reach an even higher level over time.”

Meta aims to run Muse’s business model via a freemium model, with the product being free for most users. Commerce tools will generate fee-based revenue on facilitated transactions, paid by businesses. Meanwhile, the most advanced models or extra token usage will require a paid subscription.

Wall Street Weighs In On Meta’s Muse

Deepwater Asset Management managing partner Gene Munster noted in a post on X that Zuckerberg’s commentary suggests that Muse models and agents will become the center of Meta’s universe.

“My take: In three years, Muse will become the lens consumers engage with Instagram, FB, WhatsApp, Reels,” he said.

In a separate post, Munster suggested that the 1 billion user target could be reached in less than two years. 

Shay Boloor, chief market strategist at Futrum Equities, highlighted in a post on X that Muse could eventually generate more revenue per user than Facebook and Instagram, with shopping already its most popular use. 

“That could give $META an entirely new commerce business alongside its massive advertising platform,” he said. 

META Stock: Retail Stance

On Stocktwits, retail sentiment around META stock improved from ‘neutral’ to ‘bullish’ over the past 24 hours amid a 315% increase in message volumes, according to platform data. 

META stock has gained more than 7% year-to-date. 

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