Zuckerberg says Meta bet up to $200 billion on AI without knowing if it would work

Guggenheim Securities raised its price target for Meta Platforms (META) to $850, citing progress in AI and the potential of its Muse AI agent. Meta scores 56 on the AI Index, close to Anthropic's 58. Guggenheim expects Muse to monetize through business payments, similar to Meta's advertising model, and anticipates increased capital expenditure. META stock was down 3.17% at $738.32 at the time of publication.

Meta's planned data center in Richland Parish will require 4,500 MW of electricity, nearly four times New Orleans' peak demand. Entergy Louisiana CEO Phillip May stated the company will cover infrastructure costs and adjust payments if costs change, addressing critics' concerns about financial risk to other ratepayers.

Truist Securities raised its price target for Meta to $1,000, citing revenue potential from AI agent 'Muse' and strong advertising growth. The target is based on long-term revenue projections and increased capital expenditures for AI investments. Meta's Q2 revenue was $60.801 billion, with advertising accounting for 97.6%. Truist expects Q3 revenue of $63.9 billion, near the high end of Meta's guidance.

Guggenheim raised its price target on Meta Platforms (META) to $850 from $700, citing progress in Muse AI adoption and higher 2027 estimates. Muse reached 1.3 million daily active users in five weeks, though it remains a small fraction of Meta's total users. The analyst expects Muse to generate revenue through business payments, aligning with Meta's advertising model. Guggenheim also increased its 2027 capital expenditure forecast to $225 billion and projects 25% Q3 core advertising growth.

Guggenheim raised its price target for Meta Platforms to $850 from $700. Citigroup also increased its target to $895 from $800. Meta's stock was trading at $762.50, up 2.63% in pre-market.

Meta Platforms CEO Mark Zuckerberg stated the company is prepared to invest up to $200 billion in AI development, even before knowing if the models will succeed. Meta launched its first frontier-class model, Muse Wonder, aiming to compete with leading AI models. The company's infrastructure has expanded significantly, with capital spending guided at up to $145 billion this year. Meta's shares fluctuated in September due to AI-related market reactions.