Meta Plans $95 Billion Fundraising Push as Muse Growth Tests Resources

Meta's Muse quickly attracted a large audience. On October 21, Infobae reported that the AI assistant had recorded 10.2 million US downloads in its first 40 days, citing Sensor Tower data circulated by TechCrunch.

That uptake came with an early privacy problem. Wired reported that security researchers had discovered how easily shared conversation links could expose sensitive information. Meta was suspending the sharing feature.

On October 21, the privacy concerns became public alongside Meta's plans to finance a much larger AI business. Times now reported that researchers at cybersecurity firm Claroc had allegedly found 6,800 shared user chat links online.

That same day, the Financial Times reported that Meta would create a nonvoting share class, allowing it to sell equity for AI investment without reducing Mark Zuckerberg's control. The New York Times reported that increased AI spending had pushed the company's cash flow into negative territory.

The earnings coverage also showed financial pressure beyond AI spending. Variety reported that an $18 billion nationwide settlement with state attorneys general had forced nearly $10 billion in additional third-quarter costs. Reports differed on revenue: The Wall Street Journal put it at $64.2 billion, while Business Line reported $64.6 billion and 26% growth on October 22.

On October 22, CNET reported Zuckerberg's claim that a quarter of Muse's 10 million users were shopping through the agent, with an average purchase of $200. On October 23, The Next Web reported that purchase volumes had exceeded expectations, prompting Meta to ask Stripe to raise its credit limits.

By October 26, the fundraising plan had a much larger stated scale. CNBC reported that Meta planned to raise $95 billion for AI infrastructure and superintelligence. The Wall Street Journal described a planned $35 billion stock offering within an overall effort to raise up to $95 billion.

Meta now has evidence of rapid adoption and shopping activity, but neither establishes how profitable Muse will be. Times of India reported that CEO Mark Zuckerberg saw revenue potential beyond Facebook and Instagram, while indicating that AI might not remain free.

The financing announcement is a plan, not a completed fundraising. The latest Wall Street Journal coverage distinguishes the proposed $35 billion offering from the broader $95 billion target. Meanwhile, the supplied coverage does not establish whether conversation sharing has resumed or what safeguards would accompany its return.

The immediate financial test is how Meta carries out the proposed offering and how much of its broader target it raises. The nonvoting structure is designed to bring in capital without diluting Zuckerberg's voting control, according to the Financial Times.

For Muse users, the unresolved issues are privacy protections and future pricing. Wired reported the sharing suspension, while Times now reported Zuckerberg's comments about the expense of running AI and the possibility that Muse may not remain free.