Meta Stock Pops as Muse AI Threatens ChatGPT's Grip on Users
This article first appeared on GuruFocus.
Meta Platforms (NASDAQ:META) shares climbed 1.5% in early Monday trading as new data showed its Muse AI assistant retaining users at rates approaching ChatGPT, offering an early measure of engagement for Meta's latest artificial intelligence push.
More than 30% of Muse users returned to the app seven days after their first visit, according to venture capitalist Deedy Das, who cited Sensor Tower data in a post on X. Muse's 14-day retention rate stood at 22%, trailing ChatGPT over the same period.
Retention measures the percentage of users who return to an application after a set period. Muse's two-week figure also lagged established platforms, including WhatsApp, YouTube, Instagram, TikTok and Snapchat, according to the data shared by Das.
Meta introduced Muse in September as it expands its consumer AI offerings. Sensor Tower estimated the app attracted 2.8 million global downloads during its first two weeks, compared with 3.7 million for ChatGPT over its initial two weeks.
The figures suggest Meta has attracted early interest, but sustained engagement remains a key test as the company seeks to establish Muse in a competitive AI assistant market.