Meta Bets Billions on Muse AI, Issues New Stock — SkimNews
Get the Tech newsletter
Daily tech — startups, AI labs, chips, the launches that shape the next decade. Free.
- Meta introduced a new class of non-voting Class C common stock in January 2027, effectively a two-for-one split, to fund AI investments and talent retention while preserving Mark Zuckerberg’s control.
- Meta reported over 10 million Muse accounts set up in the U.S. and Canada within a month and a half, with Zuckerberg forecasting the AI agent could eventually serve billions and generate outsized revenue.
- Meta raised its 2024 capital expenditure forecast to $135–$145 billion, up from a prior $130–$145 billion range, reflecting intensified spending on AI infrastructure despite a $2.12 billion free cash flow deficit in Q3.
- Meta projected AI businesses would begin contributing incremental revenue in 2027 and become a meaningful source of revenue diversification, with CFO Susan Li emphasizing AI as the focus for future growth, including within Reality Labs.
- Meta reported Q3 revenue of $64.60 billion, above Wall Street’s $63.37 billion estimate, and guided Q4 revenue between $73 billion and $76 billion, exceeding the $73.73 billion consensus, helping boost shares over 4% in extended trading.
- Meta acknowledged higher costs for Muse compared to past product launches and signaled it would monetize the agent sooner than its usual playbook, despite initially forgoing upfront charges to build network effects.
Why it matters: Meta is betting its future on AI agents, redirecting billions from the metaverse to Muse while maintaining control structure and investor confidence through strong revenue and growth signals—despite a $2.12B quarterly cash outflow and $25B legal penalty looming, which could strain its reputation as AI adoption scales.
Ask SkimNews
