--- title: "Meta splashes out big bucks to double down on AI, unveiling a new competitive strategy" type: "News" locale: "en" url: "https://longbridge.com/en/news/292308411.md" description: "Meta launched its latest AI model Muse Spark 1.1 and announced it will invest a substantial amount of funds to subsidize usage costs. Its pricing is only a quarter of that of its competitors, aiming to attract customers to try it out at an extremely low price to capture market share rather than seeking short-term profits. This move is seen as a competitive counterattack against leading companies like SpaceX and OpenAI, aiming to address the pain points of enterprise computing costs and retain users" datetime: "2026-07-10T10:33:26.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/292308411.md) - [en](https://longbridge.com/en/news/292308411.md) - [zh-HK](https://longbridge.com/zh-HK/news/292308411.md) --- # Meta splashes out big bucks to double down on AI, unveiling a new competitive strategy Meta CEO Mark Zuckerberg The laggards in the AI race are launching a full-scale counterattack! Just one day after SpaceX's artificial intelligence department released a new large model, Meta Platforms launched its latest model, Muse Spark 1.1, on Thursday. Like SpaceX, Meta claims that this new model's performance is comparable to the flagship products of leading labs such as OpenAI, Anthropic, and Google, but whether developers will recognize it will need to be validated in the coming days. (At the same time, OpenAI also released its latest generation model, GPT 5.6.) However, the most noteworthy signal from this release is that Meta plans to invest a substantial amount of money to subsidize model usage fees, aiming to capture market share from competitors. Meta CEO Mark Zuckerberg stated in an interview with Bloomberg that the pricing for the company's large models will be "extremely competitive and very attractive." Reports indicate that Meta's pricing is only a quarter of the publicly quoted prices of Anthropic and OpenAI's leading models, which can be considered predatory pricing. This pricing strategy cannot rely on AI business profitability in the short term, but this is clearly not Meta's goal at this stage. The company understands that the cost of AI computing power is a major headache for many enterprise customers, and various vendors are trying to control costs by either using open-source models or scheduling some AI tasks to older models with lower costs. In this industry context, Meta's approach is to attract customers to try its new model with extremely low prices, and then retain users; once it establishes a foothold in the market, it can raise prices later. This strategy is similar to that of other companies in different industries, such as streaming service Netflix and ride-hailing service Uber. This approach may be effective, but the current industry competition is fierce. (Refer to today's TITV column in The Information for an in-depth analysis of OpenAI's new series of models.) Meanwhile, Meta's investment in AI will continue to increase. The company has previously planned to invest $125 billion to $145 billion in capital expenditures for AI data centers this year; in addition, driven by AI business, external cloud services and operational expenditures related to AI talent will also rise significantly. How much is Zuckerberg willing to spend to seize the AI race? Meta's heavy investment in this new field is not surprising. Since 2020, its Reality Labs division has accumulated losses of $870 billion, primarily due to Zuckerberg's metaverse strategy. Despite the massive investment, Meta has gradually scaled back its metaverse plans over the past two years and fully shifted its focus to the AI race. The capital market has reacted positively to Meta's AI plans. Although the stock has performed poorly overall this year, it rose 4.7% on Thursday About a year ago, Coinbase Chief Legal Officer Paul Grewal posted on LinkedIn that he had "the best job in the legal industry," but he has clearly changed his mind. Coinbase announced on Thursday that Grewal, who has served for nearly six years, is set to leave. Grewal posted on social platform X on Thursday, using the common phrasing for resignations: "It's time to embark on a new journey." During his tenure at Coinbase, Grewal handled many significant events: in 2023, the U.S. Securities and Exchange Commission (SEC) sued Coinbase, accusing it of operating an unregistered securities exchange and brokerage, and Grewal led the company's defense; after the new government took office last year, the SEC withdrew the lawsuit. Recently, he has been leading negotiations for the cryptocurrency market regulation bill known as the "Clarity Act," which is currently stalled in Congress. Industry professionals are hopeful that the bill will be passed before the midterm elections, as it will establish a complete regulatory framework for tokens and trading platforms. Coinbase stated that Grewal will serve as a company advisor until the end of October. Speculation is rife about his next move, with a high probability that it will be to an AI company ### Related Stocks - [META.US](https://longbridge.com/en/quote/META.US.md) - [METU.US](https://longbridge.com/en/quote/METU.US.md) - [METW.US](https://longbridge.com/en/quote/METW.US.md) - [METD.US](https://longbridge.com/en/quote/METD.US.md) - [FBL.US](https://longbridge.com/en/quote/FBL.US.md) - [FBY.US](https://longbridge.com/en/quote/FBY.US.md) - [FBYY.US](https://longbridge.com/en/quote/FBYY.US.md) - [MAGX.US](https://longbridge.com/en/quote/MAGX.US.md) - [OpenAI.NA](https://longbridge.com/en/quote/OpenAI.NA.md) - [GOOGL.US](https://longbridge.com/en/quote/GOOGL.US.md) - [GOOG.US](https://longbridge.com/en/quote/GOOG.US.md) - [NFLX.US](https://longbridge.com/en/quote/NFLX.US.md) - [UBER.US](https://longbridge.com/en/quote/UBER.US.md) - [COIN.US](https://longbridge.com/en/quote/COIN.US.md) ## Related News & Research - [Meta AI image detector fails to identify some of its own cropped AI images, Reuters analysis finds](https://longbridge.com/en/news/292339206.md) - [Meta jumps into AI coding market in effort to chase Anthropic and OpenAI](https://longbridge.com/en/news/292212124.md) - [Mark Zuckerberg Posted on Elon Musk's X for the First Time Since 2023 to Promote Meta's Muse AI—MKBHD Explains How to Opt Out](https://longbridge.com/en/news/292275185.md) - [META Stock Pops as Meta Platforms Launches AI Image Model](https://longbridge.com/en/news/291976054.md) - [Keybank National Association OH Purchases 8,871 Shares of Meta Platforms, Inc. $META](https://longbridge.com/en/news/292037711.md)