Meta says its AI has caught up with the leaders, and its shares rose 3.38%

Meta

Meta Platforms rose 3.38% to US$742.96 on Monday. It released two new AI models, Muse Wonder and Muse Wonder Full, and called them its most capable yet.

So what exactly is Meta claiming? Mark Zuckerberg told the Financial Times that Meta has reached the frontier and caught up with its competitors. The shares were up as much as 4.7% during the session.

Meta says Muse Wonder beats similar models from OpenAI and Anthropic on some technical benchmarks. It is built to do jobs on your behalf, such as reading a lease, sorting out an insurance claim or building an app.

Chart: Meta's capital spending jumped to US$69.7bn. Revenue (columns) and capital spending (line), calendar years 2016 to 2025, US$bn on one scale. Meta expects to spend US$130bn to US$145bn in 2026. — This story’s chart of the day: the numbers, the dark version and the animated version are on its own page. The chart’s page →

Zuckerberg teased the launch on social media with a photo of a watermelon that Muse had ordered for him. Watermelon was the model's internal code name.

Catching up has been expensive. Meta expects to spend between US$130 billion and US$145 billion on capital projects this year, mostly on AI computing, and Zuckerberg told the FT the spending will keep growing.

Yeah, but

a benchmark is a test the company chose to publish. I'd want to see what developers pay for once the novelty fades, because that is what turns US$145 billion of spending into revenue.

This story ran in Catching Up Tuesday 13 October’s edition, with the market snapshot, the other two stories, the numbers and the week ahead. Read the whole edition →

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