Meta's Muse app surpasses 10M users as Zuckerberg eyes monetization
What's the story
Meta's artificial intelligence (AI) app, Muse, has crossed the 10 million user mark. The milestone was confirmed by CEO Mark Zuckerberg during the company's third-quarter earnings call on Wednesday. The figure matches earlier estimates from market intelligence firm Sensor Tower and highlights the growing popularity of Meta's innovative product in the tech industry.
User engagement
Shopping was the top activity
Zuckerberg revealed that about 25% of people who set up Muse now use it daily, a statistic that bodes well for user retention.
He also noted that 25% of engaged users were using the AI agent for shopping, with an average purchase size exceeding $200.
This level of activity surprised even industry insiders and highlights the app's potential as a commercial tool.
Security assurance
About the upcoming feature: Muse Confidential VM
Zuckerberg emphasized that many users are connecting Muse to their email or calendars, a sign of trust in the app's security.
He also mentioned upcoming features like "Muse Confidential VM," which would prevent even Meta from accessing user content.
This highlights the company's commitment to data privacy and security as it continues to develop its AI technology.
Monetization approach
Revenue per user
Zuckerberg said that now that Muse has achieved "product-market fit," the company's focus will be on scaling the AI agent, increasing revenue, and optimizing compute costs.
He also said that Muse would eventually generate more revenue per user than its current apps do.
This suggests a long-term strategy to monetize the AI app while keeping it free for most users.
Hardware integration
Reality Labs losses
Muse will also play a key role in Meta's strategy for smart glasses, with Reality Labs still losing billions.
However, losses are expected to reduce from $19.1 billion in 2025 to $15 billion this year.
This highlights the tech giant's commitment to integrating its AI technology into hardware products as part of its overall business strategy.
Financial outlook
Meta's Q3 financial results
Meta's revenues grew 26% year-on-year to $64.6 billion, while net profit surged 264% to $9.86 billion.
However, the net profit was well below investor expectations due to a $9.9 billion legal charge related to a settlement over teen mental health and social media lawsuits with nearly all US states in August.
Despite these challenges, Meta remains optimistic about its future growth prospects fueled by Muse's success and other strategic initiatives.