Meta Platforms Stock Rises as Muse Spark 1.1 AI Model Debuts

Meta Platforms shares climbed following the launch of Muse Spark 1.1, the company's latest AI model, alongside announcements of a cloud computing push. The model scored 51 on Artificial Analysis' Intelligence Index, surpassing Alphabet's offerings but trailing both OpenAI and Anthropic in performance benchmarks.

Meta is pricing Muse Spark 1.1 at approximately 25% of competitors' per-token rates, marking the company's first major move to monetize its AI technology directly. The aggressive pricing undercuts rivals as Meta attempts to capture market share in the commercial AI space, though questions around profitability at these rates persist.

The dual announcement positions Meta to compete beyond its advertising-dependent business model. Cloud computing entry gives the company infrastructure play alongside the AI model release, diversifying revenue streams as competition intensifies among tech giants racing to commercialize generative AI capabilities.