Tech giant Meta (META) has launched a new artificial intelligence model called Muse Spark, which is its first major release since bringing in Scale AI’s Alexandr Wang and investing $14.3 billion in his company. This move comes as Meta tries to catch up in the AI race, where companies like OpenAI, Anthropic, and Google (GOOGL) are currently leading. Muse Spark was built by Meta Superintelligence Labs, the team led by Wang, and is a shift in strategy after Meta’s previous models failed to gain strong interest. As a result, the company is now focused on building a more efficient system from the ground up.
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Indeed, rather than trying to release the most powerful model immediately, Meta is positioning Muse Spark as smaller, faster, and more efficient. Even so, the model can still handle complex tasks in areas like science, math, and health. At the same time, Meta has moved away from its earlier open-source approach by choosing to keep this model proprietary for now, although it may open-source future versions. In addition, the company is testing a new way to make money from AI by giving select partners access to the model through an API, with plans to expand paid access later.
Unsurprisingly, Meta is quickly rolling out Muse Spark across its platforms. The model will power the Meta AI assistant on its app and website, and it will soon be added to Facebook, Instagram, WhatsApp, Messenger, and even its Ray-Ban smart glasses. It is also expected to support future features, such as AI-generated video tools. Moreover, Meta is introducing a shopping feature that uses content from creators and communities to help users discover products.
What Is the Price Target for Meta?
Turning to Wall Street, analysts have a Strong Buy consensus rating on META stock based on 39 Buys, six Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average META price target of $862.05 per share implies 38.1% upside potential.
