Meta says Muse has over 10M users, with shopping a top activity | TechCrunch
During its third-quarter earnings call on Wednesday, Meta announced that its AI application, Muse, has surpassed 10 million users. This figure aligns with earlier estimates from market research firm Sensor Tower. However, Meta's CEO Mark Zuckerberg highlighted more than just user numbers; he emphasized how users are engaging with the app and their spending habits.
Zuckerberg noted that approximately 25% of users who have set up Muse are now using it on a daily basis, which has contributed to improved user retention rates. He revealed that among the active users who utilize Muse for shopping, the average transaction amount exceeds $200, a statistic that even surprised some industry experts. “Plaid told us that they hadn’t seen activity like they’re seeing with their connector on any other service before,” Zuckerberg remarked, referencing the financial technology company that facilitates connections between payment applications and users' bank accounts. Muse integrates Plaid's connector to facilitate shopping transactions.
In addition to shopping, Zuckerberg mentioned that users are also leveraging Muse for various personal productivity tasks, including linking the AI to their email accounts and calendars. This trend indicates a level of trust in Muse's security measures, which include a feature called “Muse Secure VM” designed to safeguard user data and privacy. He also highlighted an upcoming feature, the “Muse Confidential VM,” which will ensure that even Meta cannot access users' content.
With Muse now achieving what Zuckerberg described as “product-market fit,” Meta plans to focus on scaling the AI application, enhancing revenue, and optimizing computing costs. Remarkably, Zuckerberg projected that Muse could eventually generate more revenue per user compared to the current figures from Meta's suite of applications, which includes Facebook, Instagram, WhatsApp, and Messenger. Currently, the average revenue per user from these platforms is “several hundreds of dollars annually,” he stated.
Meta aims to monetize Muse while keeping it free for the majority of users, taking a cut from transactions conducted on the platform. Additionally, power users seeking access to advanced AI models or more tokens will incur charges. Zuckerberg expressed confidence that Muse would become profitable once it scales effectively.
Muse is also set to play a significant role in Meta's strategy for smart glasses. The Reality Labs division, responsible for the development of smart glasses, virtual reality, and the metaverse, has been incurring substantial losses, though these are projected to decrease from $19.1 billion in 2025 to $15 billion this year.
In addition to scaling Muse and supporting hardware initiatives, Zuckerberg teased plans for what he referred to as the “Muse network.” He described this concept as evolving Muse from a “single-player game” to an interactive experience where users' Muses can collaborate with those of their friends and family. “And if you want to buy something, it’s not just navigating to that business’s website; it’s talking to their agent,” he added, outlining a vision for a more interconnected and interactive shopping experience through the AI platform.