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Meta Debuts Muse Spark as AI Bet Lifts Shares and Raises Spending Questions

Wall Street now weighs a promising model against a costly AI buildout.

Overview

  • Meta introduced Muse Spark from its new Superintelligence Labs, opened it to developers through an API, and said it targets performance on par with OpenAI, Anthropic, and Google.
  • The stock rose about 9% after the reveal, reflecting hopes that the model can boost ad targeting and other products used by billions of people.
  • KeyBanc and Wells Fargo lowered price targets, pointing to rising costs for AI data centers and chips, though both firms kept bullish ratings on the shares.
  • Meta projects $115 billion to $135 billion in 2026 capital spending for AI, including new hyperscale facilities and an Entergy partnership to fund seven natural gas plants that will power the Hyperion campus.
  • The company is reshaping its AI stack by elevating Alexandr Wang, acquiring Moltbook, and advancing its in‑house MTIA chips, though reports say it paused work with startup Mercor after a data breach.