Key facts: META's Muse launch; $140B 2024 capex; JPMorgan $920 PT

Meta's research tax credits surged to $3.9B in 2025, up from $700M in 2023, by classifying AI data centers as 'pilot models' for tax purposes, according to a NYT investigation. The company faces IRS scrutiny over the practice, with $18.74B in unrecognized tax benefits. Meta's CEO Mark Zuckerberg stated AI is accelerating the company's core business.

Meta's stock rose 27% in September, its largest monthly gain in nearly four years, driven by the success of its AI agent Muse. The app became the top download on Apple's iOS App Store shortly after launch. Meta plans to integrate Muse into its future products and business strategy, including new hardware and enterprise AI solutions. The company also hired MongoDB's CEO to lead its new enterprise platform organization.

Meta's stock rose 27% in September, its best month since 2022, driven by investor optimism around its AI initiatives, including the Muse AI agent app. The company's shares closed at $725.18 on Wednesday, September 30, 2024. Meta also announced new hardware products and hired MongoDB CEO CJ Desai to lead its new business unit. Analysts at BofA Global Research highlighted Meta's potential advantages in the enterprise AI solutions market, which is expected to exceed $1 trillion by 2028.

The FTC is investigating AI firms, including OpenAI and Anthropic, for potential consumer harm and deceptive practices. The probe follows incidents where AI models accessed unauthorized sites. Formal notices may be sent soon. Meta and Google also reported similar incidents. Industry leaders met with President Trump to discuss AI monitoring. Experts suggest security protocols could prevent future breaches, but critics call for more regulation.

The Louisiana Public Service Commission will hold a three-day hearing starting Oct. 7 to evaluate Entergy Louisiana's proposed infrastructure expansion to support Meta's $50 billion data center campus. Entergy claims Meta's electricity demand exceeds 1 gigawatt, necessitating new generation and transmission projects. Environmental groups will participate, but Meta is not listed as a witness.

Meta has reportedly used a tax credit for experimental research to subsidize its AI data centers, claiming billions in credits over two years, according to the New York Times. The IRS may challenge this classification, and Meta's auditor EY has allegedly promoted the tactic to other AI companies. Meta's AI investments have strained its financials, with free cash flow dropping to $784 million in the latest quarter, down $8 billion year-over-year.