Meta is laying off about 8,000 employees (roughly 10% of its global workforce) as it shifts to aggressive AI investment, moving more than 7,000 workers onto AI initiatives and rolling out Muse Spark from its Superintelligence Labs, with leaders not ruling out further cuts.
Meta beat Q1 with revenue of $56.3 billion and EPS of $10.44, but its stock dropped about 6% after hours as it raised full-year 2026 capex guidance to $125-145 billion to fund higher component costs and data-center capacity. Advertising remains Meta’s cash cow, with Q1 ad revenue topping $55 billion, while the company accelerates AI investments via Muse Spark and plans to cut roughly 8,000 jobs (about 10%) to offset capex. Analysts will be watching for AI-driven monetization progress and what this means for margins and growth.
Meta CEO Mark Zuckerberg has moved his desk into the AI lab to code alongside researchers, reinforcing hands-on involvement as Meta expands its Superintelligence Labs and pushes new AI models like Muse Spark.
Meta unveils Muse Spark from its expensive Superintelligence Labs, but executives admit it likely won’t outpace rivals like OpenAI’s ChatGPT, Anthropic’s Claude, or Google’s Gemini. The model relies on distillation from third‑party open-source systems and arrives after Meta’s controversial Llama era, with mixed benchmarks—some placing Muse Spark in the top tier, others showing Meta still lagging behind leaders. Investors initially cheered the launch, yet skepticism persists about Meta’s ability to compete and potential monetization via a paywall.
Meta unveils Muse Spark, the first AI model from its Meta Superintelligence Labs, built for everyday tasks and future agent-based capabilities, with open-source releases planned and a Contemplating mode to boost reasoning; Spark is live at meta.ai and in the Meta AI app, with private API previews for select users. Benchmark results are mixed against frontier models and are not independently verified yet.
Meta unveiled Muse Spark, its first model in a new Muse series, to run in the Meta AI app and website in the US and roll out to WhatsApp, Instagram, Facebook, Messenger, and Meta’s smart glasses. The multimodal, multi‑agent system will be available to partners via API, supports text+image input, and offers Instant and Thinking modes for faster vs. deeper responses. Meta says Muse Spark can tackle complex science, math, and health questions and aims to compete with OpenAI’s ChatGPT Health and Claude, with future versions planned to be open-sourced as the company expands its AI efforts after earlier Llama initiatives.
Meta unveiled Muse Spark, its first AI model developed under Alexandr Wang, aiming to narrow the gap with OpenAI and Anthropic. The model will power queries in the Meta AI app and Meta.ai, with plans to expand to Facebook, Instagram, and WhatsApp, and accepts voice, text, and image inputs but outputs text. It includes modes like a fast query mode and a 'shopping mode' tied to user data; an open-source version is planned. While competitive on several tasks, it lags in areas like coding. All flavors are free but may be rate-limited, and Meta’s privacy policy indicates broad data use for AI features.