In the Loop AI

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I don't know how he did it, but Mark Zuckerberg and Meta might have just pulled

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off the biggest comeback in AI ever.

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They just released their new model called Muse Wonder.

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It's basically the largest AI model that they've ever released,

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and it competes directly with Claude Opus 5.5, GPT-6 Astra, and Fable 5.1 from

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Anthropic, basically the most powerful AI models that exist today.

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And this is crazy because 18 months ago, Meta's models would come in last place

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pretty much every single time for video generation, image generation, general LLM context.

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It just sucked overall. They also torched billions of dollars on fire,

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spent $25 billion to hire one 29-year-old individual to head up their new meta

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superintelligence labs, and it just seemed like Zuck had kind of lost the plot.

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But with this new model, codenamed Watermelon, now officially called Wonder,

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they have a real competitor to compete against Anthropic in open air.

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You see, the AI race up until yesterday was pretty much a two-horsed one and

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now there's a third major player in the works.

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And the last thing I'll say is Meta's entire AI strategy seems to be very different

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from that of Anthropic and OpenAI.

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They seem to be focusing just on personal agents and I think that's a much larger

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advantage than I actually gave it credit for and this is coming from a former

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hater of Meta products now actually someone who enjoys using them.

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So I'm going to get into all of this and more the brand new models on today's

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episode of in the loop brought to you by qualcomm.

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Okay, so let's start with the model itself. Meta actually released two models,

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but it's both called Muse Wander.

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But there's two varying degrees of effort across both of these models.

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So the standard one is called Muse Wander. And this is basically their Claude Opus 5.5 competitor.

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And it actually comes in at exactly the same price.

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It's $4 per million tokens input in, $10 per million tokens output.

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So it's very clear that they're trying to compete with Opus 5.5.

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And it's actually quite good.

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But before I get into the benchmarks, the second model is their max model,

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their Fable 5.1 model, their bigger competitor, which is actually kind of behind

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closed doors right now, but you can access it if you get a $50 subscription.

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But the idea here is, can Meta's second model compete directly with Fable 5.1?

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Well, the answer is a bit of a mixed bag. If you look at this tweet from Aaron

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Levy, he kind of shows the progression of Meta models over the last year and a half or so.

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When they started, Meta's models weren't very performative.

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We're looking at the Artificial Analysis Intelligence Index,

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which is basically the best way to assess the general intelligence of a model.

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Think of it as like the ultimate human exam, but for AI models,

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they're tested through a mixture of maths, reasoning, coding,

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literature, creative writing, basically the stuff that humans are tested on

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when they're kids growing up through high school, college, blah,

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blah, blah, but for AI models.

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Now, back in the day, they used to score pretty low scores. You're seeing on

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the right-hand side of the screen around 31 to 34.

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And now the massive leap over a year and a half, leapfrogging often some very

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prominent names and models, have now put them in second place,

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just within striking distance of the flagship model from Anthropic Claude Opus 5.5.

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And when we look at the benchmarks, at least from the numbers that Meta's showing

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us, this model seems to be quite good. It's really good on personal superintelligence

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index. It's pretty good at long-term coding, especially for agents,

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because this is a model designed for AI agents specifically.

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It's really good at automation, general work.

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But it's also really good at legal stuff. I was looking at this Harvey Lab AA,

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which basically tests the model's capability to replacing or automating a bunch of lawyering work.

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And it's more than double the second place, which is Claude Fable 5.1 Max. It's called 13.1.

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And I'm mentioning this because Zuck specifically said that the models that

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Metis is putting out Muse Wander, Muse Wander Full, which is their Max version,

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the entire focus around these models is that they actually are useful to you.

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And I mean that specifically, just you. It's not meant to be this kind of generally.

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Widely available LLM that is weirdly applicable to anyone and everyone.

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It's trying to optimize for the types of work that the majority of the people face.

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Now, that's not to say that anyone and everyone in this particular example is

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a lawyer, but anyone and everyone typically gets involved with some kind of

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lawyer or contracting or reviewal thing, whether you're signing a new employee

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contract to join a new company.

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Or if you're dealing with a contract with an insurance company or whatever that might be.

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And this is just one snippet of what's going on inside Zuck's mind and Meta's entire AI strategy.

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Something that's also net new for them is DeepSwe 1.1 and coding in general.

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This model is a major leap up from its predecessor. Now, is it as good at coding

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as Claude Code, Fable 5.1, as GPT-6 Astra Codex? Would you or should you drop

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your subscriptions there and start using Meta?

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Some people, and this is genuinely a mixed camp, would say, yes, I saw a review from

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Theo GG, who I love his videos, I love his content in general,

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and he got early access, and he's been playing around with this for a few weeks.

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He's strictly extremely disciplined when it comes to just giving his very honest

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review. He doesn't hold back. And he's historically hated on Meta.

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And his comeback to this entire thing was, I hate to say it,

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but it's actually quite good.

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Now, it's not quite good in terms of like creating new apps and websites when

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it comes to coding, but it's good at detecting flaws and security bugs that

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other models may not have picked out.

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And he actually showed a few examples where he was like, listen, I tried Claude, I tried.

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GPT and it wasn't able to figure out my problems but Meta, Muse,

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Wonder figured it out for me.

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So that's enough of an excuse to at least incorporate it into my workflow.

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I don't need to replace any of my other subscriptions but if this is free and

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or cheap I'm going to use it.

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But putting the benchmarks aside there is actually another good reason why you

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should be using this model.

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The first is called active memory. This is basically a reference to the model's

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capability of pulling the most context about you and carrying it forwards in

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every single conversation and interaction that you have with the model.

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Memory and AI models isn't something new. If you look at Chad GPT,

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who basically were the ones that pioneered this entire personal memory AI assistant

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type thing, you would be familiar with, okay, cool, my AI knows more about me,

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I'm more likely to use it.

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But what Meta has been able to achieve here with this model is something a little

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bit more, It's something a little bit more proactive, but also more intelligent

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in terms of pulling the right bits of memory.

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You see, it's not as simple as telling an AI model to understand everything it can about you.

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It's also about making sure that the models actually know what right bits of

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information to pull about you.

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And OpenAI has had all the time in the world to try and figure this out.

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And yet they haven't been able to put out an agent or a model that I think truly

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sticks Xen feels loyal to me, if that makes sense.

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And Meta's come along and they put out their personal agent Muse a few weeks

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ago, literally two and a half weeks ago.

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And they have 6 million downloads so far. And I think around 3 million weekly

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active users, which of course is only a drop in the ocean when you compare it

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to the likes of Anthropic and OpenAI.

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But the feedback is where the distinction is. Meta has been able to create a

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very compelling product.

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As I said before, I have typically hated Meta products and I'm the first to

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put my hands up here, but it's actually quite a good feature.

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So the fact that they're bringing this and pairing it with a Fable 5.1 worthy

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model can only yield, in my opinion, what I could expect to be a much better

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personal agent experience.

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So I'm going to play around with Muse going forwards, but my guess is it's going

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to get a hell of a lot better.

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The second thing, though, is the one that I'm most excited for and something

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that I haven't seen in any other AI lab.

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Something called active focus, which basically means that if an AI model or

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if their AI model comes across a challenge or an obstacle, one which

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it can't typically surmount and it needs to usually come back to you and say,

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hey, I can't figure this out. Let's.

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Kind of approach this in a different way. It just does it itself.

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Now, you might have heard versions of this from ChatGPT, from Claude.

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They were only coding specific. That's the difference here.

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Typically, if you use ChatGPT or Claude and it's doing the relentless thing,

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you know, it's like trying to fix and solve a problem.

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It's usually on coding projects. When you look at Muse Wander specifically,

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it's for any and every task.

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If it's like, okay, I think he's trying to figure out a gift for his wife or

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try to figure out how to plan a specific trip and it comes up against an obstacle like hey

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i can't get access to this website there's a cloudflare issue or i can't get

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access to certain bits of information because it's behind a paywall

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it'll start to intuitively try to figure out okay maybe i'll go to a secondary

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resource what secondary resource should i go to what's reputable that i know

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i can rely on and not have to ask.

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To kind of verify or check and it starts to become this weird but very useful

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personal assistant that applies to, and this is the most important part,

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99% of the rest of the world.

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I've explained this in a previous episode, but Meta's models are starting to

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feel like models that your grandma would love. And I mean that in the most complimentary

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way ever, because it's just easy and simple to use.

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I speak about AI every day, and I think my mom watches the majority of my episodes,

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and I kind of gauge how good an episode is by the reaction that she gives me,

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or whether she reaches out and says, wow, I had no idea that blah,

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blah does blah, blah, blah.

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Or I didn't know this model did this. I'm going to go use this.

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I've never heard so much feedback from her for one single topic.

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Than MetaMuse. And Meta has this product DNA, something that I haven't seen

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in any other AI company when it comes to AI, at least since ChatGPT and the rise of Chatbot LLM.

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So there's something unique here. It's not just about the model,

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it's about who they're designing it for.

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And ActiveFocus is just something that helps them get there.

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Now, when it comes to pricing and accessibility, they gave API pricing for the standard model.

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So I think it's $4 in and $20 out which is exact same competitive pricing to opus 5.5

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but for the larger fuller model the max version the model that is meant to compete

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directly with gpt 6.1 astra and fable 5.1 they haven't really given a general

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price point they've hidden it actually

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behind their coding subscription which costs 50 bucks a month so compare that

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to the pro plans of anthropic and opening eye way you have to pay top dollar like.

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$200 to $300 a month, this is a pretty good deal.

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But I also do wonder whether Meta is doing this, restricting the model usage,

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because they may not have enough compute to actually serve the models at large scale.

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At the end of the day, Meta has a crazy distribution of, I think,

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3.3 billion users across all of the different platforms.

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And it's no secret, they're trying to plug their AI models into every single

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platform. You can use Meers on WhatsApp, you can use it on Facebook Messenger,

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or Facebook Marketplace or Facebook in general.

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And you can use it on Instagram. If they wanted to roll it out to anyone and

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everyone, they would have done it already, but they haven't.

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They've only released it to the US.

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And then again, in a very limited fashion. So none of my friends in the UK can even use this.

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So I have a feeling that there's a bit of a restriction happening here because

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of a strain on resources.

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But what I would say is don't ditch your ChatGPT subscription,

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certainly don't ditch Claude, but try out Meta's new model.

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I think you're able to access it through Metamuse, their personal agent,

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which is free for now, 100 million tokens a week. From when I last checked,

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I'm using it every single day and I'm burning quite a few tokens, so it's useful.

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I sense that that's where the most distribution or most people will get access

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to it, but you can also access it directly if you just sign up for the average

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subscription with Meta, which I believe is $20 a month, so pretty competitive.

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Before I made this episode, I took a step back and I was thinking a year and a half ago, 18 months.

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Meta had the worst AI model on the market, but they'd also just torched $25

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billion to hire this guy called Alexander Wang.

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He was the head or CEO, founder of Scale AI, 29 years old, to head up their

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new Meta superintelligence lab, which they'd just created because they'd fired their ex-AI team.

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So it was a very tumultuous occasion and Zuck seemed like he was just going

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in complete war mode but having no idea what he was fighting for or a strategy

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to win and then Meta started to release a bunch of various different AI type.

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Products if you want to call it that I remember Meta Vibe which was their Sora or AI video

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app competitor AI TikTok style competitor that sucked completely flopped I remember

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when they launched a public news feed of their AI model this was like,

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one of the craziest features ever where people would have private conversations

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with Meta's chatbot and it would be publicly posted on a feed,

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much like the Facebook feed or Twitter feed, for anyone and everyone to see.

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They thought it would be really useful. So again, many blunders have been made

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from Meta since back then, but then they had started to turn things around.

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I remember when they had announced that they were acquiring Manus,

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who is an AI agent company founded in China, but then they moved and domiciled in Singapore.

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They acquired this company for $2 billion.

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Now, back then, AI agents wasn't really a thing, but Zuck made it very clear

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when he put up the money for this company.

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He said he believes the future is everyone and anyone should get their own personal agent.

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And his whole emphasis around personalization, I guess, is the entire moat and

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strategy behind Facebook and all of the meta social media products like Instagram,

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WhatsApp, or whatever that might be, is that it appeals directly to you and.

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I, or rather you individually.

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It's trained on your own individual data, and it's optimized around figuring

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out what your preferences are.

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And him combining this with a Fable 5.1 type AI model, I guess, makes a lot of sense.

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Now, of course, that Manus acquisition was reversed two months ago when China

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came in and said, you can't do this.

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We're going to reverse the entire transaction. But by that time,

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Meta had already got enough information and data that they required to build

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their own personal agent.

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And hey, presto, two or three weeks ago, you have their first super intelligent

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personal agent called Metamuse launch. And it's been a massive success for now.

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So then the final question is, what is Meta's AI strategy and how does it differ

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to Anthropic and OpenAir? And the reason why I want to talk about this,

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well, there's many, but the main reason is there's some pretty big IPOs coming up.

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Anthropic is rumored to be IPO-ing at a $2.2 trillion valuation.

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And then OpenAir is coming in at, I think, a $1.3 to $1.5 trillion valuation.

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So those two alone combined with SpaceX, I think makes up for 64,

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no, sorry, 67% of all capital raised from IPOs since the 1980s.

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That is a heck ton of capital raised by three companies alone.

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So obviously Meta's looking at this and I think they're at a,

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what's it, a 1.5, 1.7 trillion valuation.

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So if I'm Zuck, it's not only good enough for me to compete on the same territory

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that these guys are doing, generalized LLMs.

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It's important for me to leapfrog them, to beat them at a different,

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but just as important game. And that's what I'm excited to get into on today's

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episode brought to you by Qualcomm.

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So my first take is Zuck and Meta are building an AI model for you that is personal

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to you, that knows you the best.

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Now you compare that to Anthropic and OpenAI, and they're building the best brain for everyone.

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And Meta is building the best brain for you, individually you.

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It's a very slight nuance, but it is an extremely important and differentiated one.

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Because when you look at Anthropic and OpenAI, they're going for general artificial

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intelligence or super intelligence, whichever term you prefer.

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And the idea here is one model that serves anyone and everyone.

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But in my mind, a general model can never eventually be as good at doing specialized

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work as a model that is just trained on specialized data.

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Makes sense when you talk about it, but has not been proven as much given that

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Anthropic and OpenAI has had such a lead.

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Until we had the likes of models that were trained locally in the open source

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world, especially with the Chinese LLMs that were really good at doing specific

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things versus the general LLMs from Anthropic and OpenAI. And then you had MetaMuse

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come out, which was the personal intelligence.

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And that's the hint at where Meta and Zuck are going.

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They see a new territory that they want to break into and own.

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And that is the medium or the vector that 99% of the rest of the world who aren't

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AI nerds, who aren't in the bubble, who aren't crazy software engineers using

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cloud code to spend on multiple agents to, I don't know, build a billion dollar company.

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They just want to focus on the average normal person. Okay, so how do you build

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the best general intelligence for 99% of the world? Well, you don't.

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You build the best personal AI model for them.

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And that's what Zuck figured out. That's what he realized. And so if he could

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own that conduit to do that, then he will own the best frontier model.

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For years, we've been grading these AI models on random arbitrary benchmarks

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for general intelligence.

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And Zuck just came along and said, just make a product that people actually like.

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And it got me thinking about this a bit more, which is kind of like my second thesis.

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I've never viewed meta in a favorable light, If I'm being completely honest,

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there's the whole thing around data transparency issues, them taking our data

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and creating extremely addictive products.

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I believe they had to settle like a multi-billion dollar court case recently

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because it was proven that they were doing exactly that.

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But since then, Meta has also had a strong pivot, especially when it comes to

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the AI stuff around privacy and owning your own keys. There's a version of Metamuse

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that's actually coming out a month from now that is going to be even more private

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than the one that they have right now.

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And that stems from what I'm guessing to be is good product DNA.

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I mean, it's obvious when you kind of like just look at the numbers,

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Meta owns some of the most engaging, lucrative, high network effects,

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social media platforms ever.

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When you look at WhatsApp, Instagram, Facebook, Threads, which is their most

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recent launch, and now Meta Muse, they're all viral hit products.

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So Meta basically knows how to build a product that can connect to many different

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people. So they were to try and build the best AI model for 99% of the rest

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of the world that aren't AI nerds.

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They probably have the chops to build it. So I'm realizing they have the right product DNA.

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But who could be the competitor to Meta? Well, I was talking to producer Luke

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before I started recording this episode, and I realized that

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one thing that OpenAI has done extremely well is build all the necessary features

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to have the best AI agent, like what Meta is doing, for themselves.

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They have amazing voice capabilities. They have amazing image capabilities.

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Amazing frontier general intelligence with GPT-6 Astra, really sick at coding.

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But combining all of them together hasn't been something that they've been able to pull off.

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OpenAI, in my opinion, is one good product person away from building the best

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AI agent product, and I'm still holding out that they're able to do it.

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Now I look at Anthropic, and I'm like, okay, these are the nerds that are focused

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on coding, and they are very, very good at it. They're staying in their lane.

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I don't expect a good AI agent that's intuitive for 99% of the rest of the people, but that's okay.

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Anthropik is going off to a different market. Then I look at Google and I think.

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Google is the only other company that has arguably more or better data and distribution than Meta has.

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Think about it. Like Google touches search, they touch work productivity across

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the entire G Suite. They have Google Maps, they have the Android hardware side of things.

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That data moat is so lucrative and yet they still haven't been able to put out

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a frontier model, let alone a brand new AI agent, or even come up with the idea of doing that.

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They haven't been able to pull it off. And that comes down to product DNA.

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So the final point I'll make is, when it comes to strategy, I think Meta has

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been able to tap into a brand new source that none of these other AI companies have found.

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Even OpenAI, who has all the necessary components, still doesn't have as wide a distribution as Meta.

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Meta has business building at scale for a large number of users,

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OpenAI is still a private startup which requires a lot of cash up front in order to fund compute.

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And that brings me to my final point, which is compute. Meta is in a world where

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I guess they've proven that if you pay enough money,

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you can definitely play at the frontier, which then gives me hope that SpaceX

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AI or SpaceX SI, I think he renamed the entire company to SpaceX Superintelligence,

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Elon Musk will still be able to compete because there's a lot of capital.

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I think they're raising around $40 billion to do exactly this right now as I'm

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recording this episode. And so it becomes a wall between, do you have the right product DNA?

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Do you have the right resources? Are you spending those resources in the right way?

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And do you have enough cash to fund this entire thing? It becomes a cash game

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when you actually know what you're doing.

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Meta's got all of that going for them right now, as well as going after a brand

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new territory. And I wonder if Anthropic or mainly OpenAIR will follow suit.

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But anyway, that is basically my thoughts on this entire thing

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if i sound a little frantic or if my hair looks a little frazzled or if you're

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unhappy with the lighting i'm sorry i am in kyoto i'm in japan i'm here on a

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family holiday but i was chatting to luke every day this week and i was like dude,

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there's just too much going on and we need to put out episodes i want to put

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out episodes i actually promised him that this is going to be a short episode and.

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I doubt this is sorry luke if you're in the process of editing this right now but the idea here is

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messes change things around and when i look at their stock from an investment

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perspective when i look at how people are treating them or at least viewing them in the,

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I think it's largely asymmetric at this point.

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I think people still look upon

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Meta unfavorably, and obviously there are other reasons than is just AI.

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But Zux made it pretty clear that he wants to go all in here,

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and that is the future of Meta.

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So it makes sense to at least talk about it, at least for a bit on a single

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episode, whilst I'm jet-lagged as hell. Anyway, that is the end of the episode.

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Thank you so much for listening.

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If any of you have been to Kyoto or Japan before, please give me Rex.

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I'm going to be here for another four days. So you're going to be getting more

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jet lagged episodes at odd hours of the night. You don't even want to know what time it is over here.

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And yeah, let me know about the feedback for this episode and previous episodes.

Ejaaz:
If you haven't checked out any of the previous episodes that we've started releasing,

Ejaaz:
please let me know. The feedback, by the way, from you guys have been astounding.

Ejaaz:
There's been so much support coming from you guys, a bunch of really helpful

Ejaaz:
bits of feedback. I'm trying to figure this whole solo thing out.

Ejaaz:
But it's helpful to know that like you know being out of a studio and just kind

Ejaaz:
of like talking to you face to face which is something actually that i personally

Ejaaz:
enjoy a hell of a lot more is good so.

Ejaaz:
I'm just going to start doing more of that but if you enjoyed this episode and

Ejaaz:
you're listening to it on youtube spotify apple or wherever you listen to and

Ejaaz:
you aren't subscribed or you haven't given us a rating or you haven't given

Ejaaz:
us a thumbs up or if you haven't turned off notifications

Ejaaz:
please do so it helps us out massively and yeah if you want to share it with a friend please do

Ejaaz:
and what else oh yeah we're spinning up our newsletter back twice a week hopefully

Ejaaz:
very soon getting the x thing sorted as well and you know trying to iron out

Ejaaz:
a few other kinks before we kind of get into our stride but

Ejaaz:
i love hearing from you guys please dm me please let me know anything and everything

Ejaaz:
if you disagree with me i would love to hear from you as well and yeah i will

Ejaaz:
see you on the next one thank you so much for listening see you guys on today's

Ejaaz:
episode of in the loop brought to you by qualcomm.