Meta's AI assistant, Muse, is quickly becoming a central part of how people interact with the internet, according to a new analysis from Citigroup. The bank estimates that Muse could eventually generate more than $27 billion in annual revenue by 2030, a figure that underscores the growing importance of AI in Meta's business strategy.
Muse, which is integrated into Meta's apps like Facebook, Instagram, and WhatsApp, has already seen 6.6 million downloads and 1.8 million daily users, according to the bank's research. Citi describes Muse as a potential "front door to the internet," meaning it could become the primary way users search for information, get recommendations, and complete tasks online.
What is Muse and why does it matter?
Muse is Meta's AI-powered assistant, designed to answer questions, provide recommendations, and help users navigate the company's platforms. It's part of a broader push by tech giants to embed AI assistants into everyday digital experiences, similar to how OpenAI's ChatGPT or Google's Gemini operate. For Meta, which has historically relied on advertising for nearly all of its revenue, Muse represents a potential new revenue stream beyond ads.
The $27 billion figure is a projection, not a guarantee. Citi's estimate likely assumes that Muse will eventually monetize through subscriptions, premium features, or by driving more engagement that leads to increased ad sales. For context, Meta's total revenue in 2024 was over $160 billion, so $27 billion would represent a significant but not transformative addition to its top line.
Why investors should pay attention
For everyday investors, the key takeaway is that Meta is diversifying its business. While advertising remains the core engine, AI assistants like Muse could open up new ways for the company to make money. If Muse becomes a widely used "front door to the internet," it could strengthen Meta's ecosystem and make it harder for users to leave, which is good for long-term shareholder value.
However, it's important to keep expectations in check. The AI landscape is highly competitive, with major players like Google, Microsoft, and Amazon all investing heavily in similar technology. Muse's current user numbers, while promising, are still small compared to Meta's billions of monthly active users across its apps. The path from 1.8 million daily users to a $27 billion business is long and uncertain.
Investors should also consider the broader context of AI spending. Companies like Meta are pouring billions into AI infrastructure, including data centers and chips. The recent data center cooling deals highlight the physical demands of AI, and such costs could weigh on profitability in the near term. Muse's success would help justify those investments.
What to watch next
Meta is expected to provide more details on its AI monetization plans in upcoming earnings calls. Investors will be looking for metrics like user engagement, conversion rates, and any signs of paid features. The company has already experimented with AI-powered advertising tools, and Muse could eventually integrate with those to boost ad revenue indirectly.
Another factor to watch is regulatory scrutiny. As AI assistants become more powerful, regulators may step in to ensure fair competition and data privacy. Any new rules could affect how Meta deploys Muse and how much revenue it can generate.
For now, Citi's projection is a positive signal for Meta's growth prospects, but it's not a reason to rush out and buy the stock. As with any long-term forecast, it's based on assumptions that could change. The smart approach is to monitor how Muse evolves and how it fits into Meta's overall strategy.
In the meantime, investors can look at other developments in the tech and AI space, such as Schneider Electric's potential acquisition of PTC, which shows how AI is reshaping industrial software. Or the GCash IPO, which highlights the growing fintech sector. These stories, along with Meta's AI push, illustrate the rapid evolution of technology and its impact on markets.
Ultimately, Muse is a bet on the future of AI. If it pays off, Meta could have a new growth engine. If not, the company still has its core advertising business to fall back on. Either way, it's a story worth following.
