META Stock Rises As A New AI Signal Model To Make Money

After being down and out for several months, shares of the Magnificent Seven giant Meta Platforms NASDAQ: META they started to get their groove back. The stock is up 8.8% on reports that Meta will enter the cloud computing business, selling excess capacity to third parties.

Meta shares then saw two big one-day moves on July 9 and July 10, rising 4.7% and 6%. Part of the stock's recent gain is due to the release of Meta's most important Artificial Intelligence (AI) model: Muse Spark 1.1.

The data shows that Muse Spark 1.1 is the smartest Meta model yet.

Additionally, the model may mark the beginning of an inflection point in Meta's ability to monetize AI products.

Muse Spark 1.1: Meta's AI Model Intelligence Expands

Artificial Analysis is a useful resource for measuring the relative abilities of AI models. The company evaluates models in agent, coding, general intelligence, and scientific reasoning to assign them an “Intelligence Index” score. Currently, the Muse Spark 1.1 has 51 points, the highest of any model developed by Alphabet. NASDAQ: GOOGL. However, it still ranks below many of the latest Anthropic and OpenAI models, several of which have scores above 55.

The score of the Muse Spark 1.1 is also significantly higher than that of the first Meta model of the Muse Spark, which has 43 points. Going forward, it will be important to see if the Muse Spark 1.1 maintains this result and its relative position among other models. Originally, the first Meta model of the Muse Spark had 52 points, but this has been reduced. This is because Functional Analysis reviews and recalibrates its evaluation framework over time.

However, based on recent testing, Muse Spark 1.1 represents a significant improvement over the original Muse Spark and is rated very high overall. This provides confirmation of Meta's massive AI spending and its hiring of Chief AI Officer Alexandr Wang, who was instrumental in Muse Spark's development. Meta isn't just making better models, but for the first time, it's making a real push for monetization.

Meta Steps in AI Monetization Model

Notably, the Muse Spark 1.1 marks the first time Meta will charge for access to its models. Meta will charge users on a per-token basis, or based on the amount of information the model processes and outputs, in a “pay-as-you-go” format. Anthropic and OpenAI allow users to pay for models this way, but also provide access for low monthly or annual fees.

One of the reasons to think that the Muse Spark 1.1 can get a real following and bring in significant revenue for the company of its prices. CEO Mark Zuckerberg says the Muse Spark 1.1 token price is about 25% of what Anthropic and OpenAI charge for similar models. Artificial Analysis adds weight to this. It puts Muse Spark 1.1's “Intelligence Index Task cost” about three times lower than OpenAI's GPT-5.4, which also has an Intelligence Index Score of 51.

If the Muse Spark 1.1 offers a level of intelligence comparable to other models but at a much lower cost, users have an incentive to use it. This gives Meta a realistic opportunity to start generating huge revenue directly from its AI model. This may happen with software developers using it for coding tasks, an area where its performance is greatly improved over the original Muse Spark.

However, Meta may be subsidizing the cost of its model, with Alexandr Wang calling the price “very aggressive and attractive.” The word 'aggressive' seems to indicate a certain degree of deliberate procrastination. In turn, the price of Meta may not be high enough to sustain the model profitably.

Nevertheless, with low prices, Meta has the opportunity to prove Muse Spark's capabilities to users, an important first step in generating sales. Over time, Meta may change its pricing to increase margins.

Patience Is Always Key As Meta Looks To Monetize Muse Spark 1.1

There is real reason for investors to be excited about the progress Meta has made with Muse Spark 1.1. It has a better model and is now looking to monetize it to increase returns on its use of AI. However, the true test will be what Meta shows over time in its actual financials.

Investors should monitor the company's future earnings calls for data on how much revenue Muse Spark is bringing in. It may take some time for Meta to provide detailed information on this, and near-term earnings reports may not provide much insight.

Meanwhile, recent gains reflect investor optimism, and sentiment on Meta hasn't been this high in a long time.

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