Meta's 'Muse' Sparks High Expectations... "An iPod Moment for AI" (Comprehensive)

"Muse makes you money"
Targeting the economic realm of AI agents
Connecting AI, hardware, and commerce

[Block Media Reporter Lee Jeong-hwa] "It seems that Meta has reached its iPod moment."

Meta Platforms is embarking on building a new business ecosystem centered around its AI agent 'Muse'. By expanding user touchpoints with smart glasses and the portable device 'Muse Charm', it is preparing a business model that earns commissions from transactions performed by AI.

JP Morgan assessed that Muse has the potential to become the most widely used consumer AI application since ChatGPT. Bloomberg's column praised that "the iPod moment has arrived."

On the 23rd (local time), Meta unveiled its strategy to connect Muse with smart glasses, portable devices, and shopping services at its annual developer event 'Meta Connect'. Mark Zuckerberg, CEO of Meta, presented Muse as the centerpiece of the company's 'personal superintelligence' strategy.

Meta CEO Zuckerberg explains the smart glasses equipped with Muse. Photo: Reuters (REUTERS/Carlos Barria)

Muse aims to be an AI agent that performs actual tasks rather than just answering user questions through a chatbot. Currently available as a messaging app, it will soon allow real-time voice conversations for scheduling and shopping tasks. According to the Wall Street Journal (WSJ), the Muse app has reached number one on the Apple App Store.

"Muse makes you money"... Meta targets transaction commissions

Meta's next step is to establish Muse as a single 'economic realm'.

CEO Zuckerberg stated at the developer event that the company plans to earn small commissions from transactions made through Muse in the long term. The stage screen displayed the phrase "Muse makes you money".

Meta is already connecting Muse with Walmart, Sephora, Best Buy, and Gap. Users will not only request products from Muse but also have AI handle actual purchases. Amazon has blocked access, stating that it does not allow Muse to complete purchases on its site.

JP Morgan also noted this aspect. The analyst team led by Doug Anmuth analyzed that Meta could receive a certain percentage of commissions from sales through Muse in the long term. JP Morgan raised its target price for Meta from $820 to $920. They evaluated Muse as having the potential to become "the most widely used consumer AI application since ChatGPT". On the 24th (local time), Meta's stock rose by 2% to $759 on the New York Stock Exchange.

This could change Meta's business structure, which has been focused on advertising. Bloomberg Opinion columnist Dave Lee analyzed that AI subscriptions, hardware sales, and AI transaction commissions could emerge as new business models, noting that advertising currently accounts for 98% of Meta's revenue.

Lee compared this to Apple's iPod strategy. Just as the ecosystem of transactions that followed iTunes and the App Store transformed Apple's business model, Meta could pursue a similar strategy through Muse.

AI in Your Pocket... 'Muse Charm' Set to Launch by Year-End

Meta is also expanding hardware that connects AI with users. A representative product is 'Muse Charm'.

The Muse Charm, unveiled by CEO Zuckerberg, is a small AI device that can be carried like a keychain. A virtual Muse character appears on the screen, and users can customize the character's appearance, clothing, and voice. It can be worn on the wrist, placed in a pocket, or attached to bags or keychains. The Muse Charm is set for a full launch aimed at the Christmas season.

Muse Charm. A portable AI device in the form of an accessory that can be worn on the wrist. Photo: YouTube Capture

When two users bring their Muse Charms close together, the devices will recognize and interact with each other. Meta aims for a product launch before Christmas.

Smart glasses are also a key touchpoint in the Muse ecosystem. Meta plans to integrate Muse into smart glasses within the next few months. Users will be able to activate AI without using their hands by saying a trigger phrase. CEO Zuckerberg demonstrated requesting Muse to register a schedule through smart glasses at the event.

Morgan Stanley has noted the potential for Meta's hardware advancements. The analyst team led by Brian Nowak maintained a target price of $775 for Meta while evaluating that new AR and VR products have significantly improved in size and functionality compared to previous versions. They suggest that there could be additional business opportunities in 2027.

Potential for 'AI iPod'... Competition and Trust Remain Challenges

Meta's strategy focuses on making AI agents a routine interface through smartphone apps, smart glasses, and Muse Charm. The more tasks users delegate to Muse, the more transaction touchpoints Meta can secure.

Bloomberg Opinion likened Muse to an "iPod for AI agents" in that it reconfigures existing technology for easy use by the general consumer. If services that traverse smartphones, glasses, and Muse Charm become established, it could represent a turning point similar to what the iPod brought to Apple in the past.

However, there are variables. Bloomberg's column identified competition from OpenAI and Apple, as well as consumer trust in Meta, as major risks. This is because AI agents require a significant level of information access to handle personal tasks like scheduling and shopping.

Nevertheless, Meta has a large user base. According to Bloomberg, 3.6 billion people use Meta's apps daily. Whether Meta can connect this user base to Muse and expand into AI transactions will be key to the future transformation of its revenue model.

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