Meta Muse AI Agent Hits 5 Million Downloads as Software Stocks Stage a Comeback and AI Debt Skepticism Grows

Meta's Muse AI agent, described by the company as the world's first personal AI agent and powered by its Muse Spark Frontier model, has reached 5 million downloads in 22 days, outpacing the early growth of rivals including ChatGPT, Grok, and Claude. Investors are watching closely for proof of genuine utility, and analysts including Dave Lee of Bloomberg note that early adoption data is promising, with Muse designed for mainstream consumers and requiring no specialized technical expertise.

Software stocks are staging a broad comeback as AI fuels fresh investor interest, reversing a period of fear that AI disruption would hollow out traditional software business models. Takeover activity in the sector is adding to optimism, with at least one software name jumping on a merger report, raising questions about whether anxiety over AI displacement in software is finally fading.

Not all corners of the market share the enthusiasm. Bond investors are beginning to push back on the volume of AI-related debt issuance, and San Francisco banks are reported to be trying to offload AI data center debt they recently underwrote, a signal that credit appetite for AI infrastructure spending may be reaching its limits. Separately, Anthropic's valuation is drawing scrutiny from at least one prominent investor who has raised alarms about a potential AI bubble. Commentators including economist Allison Schrager are also skeptical of AI trading tools pitched to retail investors, arguing that claims of leveling the playing field between individual and institutional investors are unrealistic.