Meta Launches Paid AI Model Muse Spark 1.1, Targets Iris Chip Production in September; Stock Rallies 4.7%

According to multiple reports, Meta on Thursday, July 9 launched Muse Spark 1.1, its first paid AI model, signaling entry into enterprise AI programming and agentic AI markets with a competitive API pricing strategy. Meta's stock surged 4.7% to $631.48, bolstered by the announcement and news that the company's custom-designed Iris chip will begin mass production in September.

Iris's production is expected to reduce Meta's reliance on Nvidia chips and lower data center costs. Deutsche Bank estimates potential cost reductions of up to 35% in 2027 if Meta deploys Iris alongside Nvidia chips. The company plans to expand data center computing capacity from 7GW in 2026 to 14GW in 2027.