Meta releases Muse Wonder AI models to challenge Anthropic and OpenAI

Meta Platforms (META) shares rose 4.08% to $747.65 after announcing Muse personal agent will be available natively on Windows. Microsoft will integrate the app with its Execution Containers. Security features limit agent access to files and networks. Launch details, pricing, and user base are unspecified. Meta's valuation is 13.55% below its GF Value estimate of $864.88, indicating potential upside if the estimate holds.

Meta Platforms (META) stock rose Monday after CEO Mark Zuckerberg unveiled Muse Wonder, a new AI model. The company claims it is at the frontier of AI technology, following a costly restructuring of its AI division last year.

Meta released Muse Wonder, an AI model claimed to match ChatGPT and Claude in coding and professional tasks, according to Chief AI Officer Alexandr Wang. The company has not disclosed whether it will publish the model's weights, which affects its obligations under the EU AI Act. Meta shares rose as much as 4.7% following the announcement. The model is available through the Meta Model API and Muse Code, and will power the paid tier of the Muse agent.

Meta Platforms (META) stock rose 3.8% to $745.96 due to analyst activity and pre-earnings positioning. Cantor Fitzgerald maintained an Overweight rating with a reduced price target of $840. TipRanks noted bullish sentiment among analysts. The company's Muse AI agent reached 5 million downloads, and it barred TikTok from purchasing ads in seven countries. The broader market was flat, highlighting company-specific catalysts.

IREN Ltd. (IREN) stock surged after Anthropic reportedly signed a multi-year cloud contract, adding to its growing customer base. Anthropic aims to expand AI computing capacity significantly, with IREN benefiting from faster data-center deployment. Analysts upgraded IREN, citing rising AI demand and higher contract pricing, with price targets up to $80. IREN shares rose 4.46% premarket.

Morgan Stanley maintains a bullish stance on Meta (META) with a $775 price target, citing its compute capacity and distribution. However, the firm estimates Muse's cost per user could range from $3 to $130 monthly, with monetization potentially delayed until 2027-2028. Slower adoption could impact near-term costs and long-term revenue. Meta's stock has risen to 21x forward earnings, indicating increased focus on execution.