Muse Chat App Surpasses 10 Million Users

Meta's AI-powered chat app Muse has surpassed 10 million users just a few months after its launch, according to the company's latest earnings call. This milestone was anticipated by market intelligence firm Sensor Tower, which had previously estimated user numbers in the millions.

The adoption of Muse is not only impressive but also concerning for Meta, as it highlights how users are utilizing the app and their spending habits. Specifically, CEO Mark Zuckerberg pointed out that around 25% of those who set up an account with Muse now use it daily, suggesting a strong retention rate.

This level of engagement has translated into significant spending, particularly when it comes to shopping via the AI agent. Interestingly, over a quarter of engaged users making purchases through Muse have spent an average of over $200 on each transaction, a figure that is noteworthy even for industry insiders.

The surprising aspect of this trend is attributed in part to Plaid's financial technology connector, which enables seamless payment integration and has seen activity unlike any other service before. This implies that Muse's secure setup, including the "Muse Secure VM feature, has earned users' trust and confidence.

The uses of Muse extend beyond shopping, with many users leveraging its capabilities for personal productivity tasks such as connecting the AI agent to their email or calendars.

Meta's focus is now shifting from developing Muse to scaling the AI agent and increasing its revenue, according to Mark Zuckerberg. This shift comes after the company has deemed that Muse has achieved product-market fit, a milestone indicating that the product meets the needs of its target market.

The tech giant is forecasting that Muse will eventually generate more revenue per user than users of its other apps, such as Facebook and Instagram. Currently, these users bring in around several hundred dollars annually for Meta. This suggests that Muse has significant potential to contribute to the company's bottom line.

Meta plans to monetize Muse by keeping it free for most users while taking a percentage of commerce transactions on the platform. Additionally, power users who want access to advanced AI models or more tokens will have to pay for these premium services.

The company is also working to improve the cost efficiency of running Muse, with Zuckerberg noting that they expect to reduce its compute costs by over 10 times in the next year. This improvement will enable Muse to be profitable once it reaches scale and serves a large user base.

Meta's Reality Labs division is still incurring significant losses, but its financial outlook is expected to improve from $19.1 billion in 2025 to $15 billion this year.

The company's plans for Muse go beyond supporting its hardware strategy and scaling user base. Meta's CEO has hinted at the development of a Muse network" that would enable users to interact with each other's virtual assistants, effectively turning Muse into a social platform.

This envisioned network would allow multiple users to work together seamlessly, blurring the lines between individual experiences. The potential for collaborative interactions is vast, and it remains to be seen how Meta will execute this ambitious plan.

Zuckerberg also mentioned that purchasing through Muse could become a more streamlined process, potentially allowing users to interact with businesses' virtual agents directly.

Meta has announced that its virtual shopping platform Muse has surpassed 10 million users worldwide. The platform's popularity can be attributed to its seamless integration of online shopping and social media experiences.

Users of Muse are engaging in various activities, with shopping being a top priority. This trend suggests that consumers are increasingly embracing the idea of virtual try-ons and interactive product demonstrations.