Episode summary
Muse Powers Meta to Cusp of $2 Trillion in Best Month Since 2013 | Bloomberg Intelligence
Bloomberg Intelligence
· · 18 min · Hosts: Paul Sweeney, Scarlet Fu · Guests: Anurag Rana, Mandeep Singh, Michael Mackenzie
Summary
Meta’s Muse AI release and Microsoft’s Copilot reboot were framed as signs that consumer-facing AI is maturing, but the bigger money still looks enterprise-led. An analyst said Microsoft is strengthening its position as an intermediary layer between model makers and customers, with newer models being added into Copilot and paid seats lifting Office revenue even if user growth is flat. He also said Microsoft’s AI monetization is centered on enterprise rather than phones, leaving consumer competition to Apple, Google, and Meta.
Meta’s rally was tied to Muse, which the analyst said has carved out a niche in long-running agents for e-commerce use cases. He argued that Meta has shown a credible play in an area once dominated by OpenAI and Anthropic, and that its momentum could support higher capex next year.
The episode also covered Anthropic’s reported $11.6 billion, seven-year Akamai computing contract and the company’s likely IPO timing. The analyst said frontier-model companies are racing to lock in capacity and that Anthropic’s annualized run rate has grown to $65 billion, making a public filing attractive if markets stay open.
Separately, a rates reporter argued that the Treasury selloff reflects a deeper shift toward a persistent 5% world, driven by hotter nominal growth, sticky inflation, larger deficits, and rising real yields rather than just war headlines or oil.
Key takeaways
- The analyst said Microsoft’s Copilot strategy is about enterprise monetization, not consumer AI, with about 30 million paid seats and a higher-priced E7 suite.
- Meta’s Muse launch helped the stock rerate because it gives the company a niche in long-running AI agents for e-commerce, according to the analyst.
- Anthropic’s reported $11.6 billion Akamai deal shows frontier-model companies are locking up capacity to support scale, the analyst said.
- The analyst said Anthropic’s annualized run rate has reached $65 billion, making an IPO timing question more about filing and momentum than business weakness.
- The rates reporter said the bond market is pricing a lasting 5% world, with real yields rising on growth, deficits, and a Fed that may be behind the curve.
Notable quotes
“I think it's a lot less to do with personal but it's a more question of enterprise product becoming a little more stronger because of the features that they have now”
“So we should see massive double-digit growth in Microsoft Office revenue over the next couple of years even when user growth is not there”
“they have done so well. uh today Microsoft has launched a revamp co-pilot where they are running their agent for you know a longer duration”
“everyone wants to lock in capacity right now. Whether you are a chip maker like Nvidia who is prepaying all their suppliers”
“I think we've got an economy nominal growth running in excess of 6%. Economy is running hot”
How the episode opens
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Microsoft abandons personal AI chatbot race with co-pilot reboot. I kind of thought that would be a net negative for the stock and go shows you what what I know which is not much. Stock's up 3%.
Let's check in with an expert here, Anorag Rana, a senior tech analyst for Bloomberg Intelligence. Honor, it's been kind of a a week here for consumerf facing AI apps if you will. Meta comes out with Muse that stocks up 10 11% on that news.
What's going on at Microsoft? Yeah, I think it's a lot less to do with personal but it's a more question of enterprise product becoming a little more stronger because of the features that they have now. It's one of the most important part of Microsoft's you know chatbot right now the co-pilot feature is that at the bottom of it they are not only using open AI models but they are actually adding newer models to it.
So for example um anthropics claude and we think down the road it's going to be other models you know perhaps Mistral in Europe and maybe other open source models down the road. So I think what Microsoft is showing is it is an important layer in between and the model companies are not going to take all the economics here.
Do we know what the have has Microsoft given us a lot to work with here in terms of um numbers and you know paid subscribers? — Yeah. So if you you know the most amazing part of Microsoft Office is and I can go back you know 15 years thinking well where are you going to get more users?
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- meta ai assistant muse
- meta stock breakout
- ai spending and monetization
- anthropic data center contract
- rising us treasury yields
Companies and tickers mentioned
- META
- AKAM
- Meta Platforms
- Anthropic PBC
- Akamai Technologies Inc.
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Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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