Meta just shook up the AI world with two new models: Muse Image and Muse Spark. These are not just upgrades. They are designed to change how AI serves creators, advertisers, and developers.
Muse Image lets users generate AI images by using photos from public Instagram accounts. Meta has set clear rules for privacy. Private accounts and users under 18 are excluded. People can also opt out if they don’t want their images used.
This new feature targets advertisers, creators, and influencers who want fresh, AI-generated visuals. Meta says it built safety mechanisms and guardrails around Muse Image to prevent misuse.
Muse Spark Powers Up AI Coding With Competitive Pricing
On the coding side, Meta released Muse Spark 1.1. This model focuses on agentic coding, which means it can handle complex software tasks more independently. Meta’s CEO Mark Zuckerberg called its pricing “very aggressive and attractive.”
Meta claims Muse Spark beats similar products from big AI players like OpenAI, Anthropic, and Google. The new version came out on Thursday, July 9, 2026, signaling Meta’s strong push into developer tools and AI automation.
Turning AI Compute Into Cash
Meta also revealed plans to monetize its AI computing power. This move caused its stock to jump about 6% on Friday, July 10, and roughly 15% over the week. Investors reacted to a clear plan to turn Meta Compute into a revenue source.
Wolfe Research estimates that every gigawatt of compute Meta monetizes could be worth around $25 billion. That could boost earnings per share by 20%. This is big news since Meta has never sold anything from Meta Compute before or served external cloud customers.
Meta faces tough competition in cloud computing from AWS, Azure, and Google Cloud. These companies have a decade-long head start. Still, Meta’s entry could shake things up if it delivers on its promise.
Meta’s stock rally came from this new story about compute power, not from ads. This is notable since Meta recently cut 8,000 jobs but still posted record revenue and invested heavily in AI infrastructure.
Options trading around Meta surged too. Volume ran over three times its 30-day average, with 78% of the $1.8 billion in options premium linked to call options. This shows strong investor confidence in Meta’s AI and cloud plans.
Mark Zuckerberg said an AI cloud business “makes sense” for Meta. The company is betting that selling AI power and models to outside customers will open a fresh revenue stream.
Meta’s future will depend on how well it can turn its AI tools and compute into a business. For now, investors seem excited about the possibilities.
Based on
- Meta spent a year being punished for its AI spending. Then it told investors how it would get the money back. — thenextweb.com
- Meta unveils two AI models | Semafor — semafor.com
- Chip stocks lead Big Tech rally | Semafor — semafor.com
- Meta releases latest update of AI model Muse Spark | Fortune — fortune.com
