Meta's AI bets pay off as Zuckerberg secures new control measures

Meta's recent rollout of the Muse AI assistant has become a breakout hit, climbing to the top of app-store rankings and reaching more than 10 million downloads in North America within a week, beating OpenAI's Dots product. The achievement comes after a period of extensive layoffs, a 10 % workforce cut, and internal morale challenges, as the firm poured hundreds of billions into AI research and compute. Buoyed by Muse's reception, Mark Zuckerberg secured board approval for a new share class that would give him $20 billion in immediate liquidity to offset a potential California billionaire tax while preserving his controlling interest.

The company also settled a multi-state lawsuit over teen safety and faces a $25 billion judgment from a New Mexico jury over the Cambridge Analytica case. Despite a 7 % stock dip following earnings, analysts see the "Muse effect" as a positive shift, though skeptics warn the AI spend has yet to deliver clear profit.