During its Q3 earnings call on Wednesday, Meta announced that its AI application Muse has amassed a user base exceeding 10 million, confirming earlier predictions from a market analysis company.
CEO Mark Zuckerberg highlighted the ways users are engaging with Muse, noting that approximately 25% of those who created an account now use the app daily, which has positively impacted user retention.
Zuckerberg also revealed that over 25% of active users utilizing Muse for shopping are averaging purchases above $200, a figure that has taken industry experts by surprise.
“Plaid informed us that they haven’t experienced activity like this with their connector on any other platform,” he mentioned, referring to the financial technology firm that facilitates connections between payment apps and bank accounts. Muse incorporates Plaid’s connector to support shopping with its AI capabilities.
In addition to shopping, Zuckerberg pointed out that users frequently leverage Muse for personal productivity tasks, including integrating it with their email and calendars. He emphasized that this suggests users place a high level of trust in Muse’s security features, including “Muse Secure VM,” which is designed to safeguard personal data. He also announced the upcoming “Muse Confidential VM,” which aims to obscure users’ content even from Meta.
After achieving what Zuckerberg referred to as “product-market fit,” Meta plans to concentrate on scaling Muse, boosting revenue, and optimizing its computational expenses. Notably, there are expectations that Muse could generate higher revenue per user compared to the current earnings from users of Facebook, Instagram, WhatsApp, and Messenger, which totals a few hundred dollars each year.
Meta’s strategy for monetizing Muse involves offering the service free to most users while taking a cut from transactions occurring on the platform. Additionally, power users seeking access to premium AI models or extra tokens will incur charges.
Zuckerberg expressed confidence that Muse will become profitable once it grows to scale.
“We are enhancing our infrastructure to support over a billion users in the coming years,” he informed investors during the earnings call. “Currently, running Muse requires substantial computing resources, but we anticipate improving its cost-effectiveness by over 10 times within the next year, enabling profitability once revenue streams expand.”
Muse is set to play a pivotal role in Meta’s smart glasses initiatives. While Reality Labs, the division responsible for smart glasses, virtual reality, and the metaverse, continues to face financial losses, these losses are projected to decrease from $19.1 billion in 2025 to $15 billion this year.
In addition to scaling its capabilities and supporting hardware advancements, Zuckerberg hinted at the development of a “Muse network,” which he described as transitioning Muse from a “single-player game” to a platform where multiple users’ Muses can collaborate.
“When you want to make a purchase, it won’t just involve heading to that business’s website; it will be a conversation with their agent,” he added.
