Meta Kills AI Image Tool Days After Launch Amid Privacy Firestorm
META sits 28% above its 52-week low of $520.26 on elevated volume (2.3× avg).
Summary
Meta abruptly pulled its Muse Image AI feature on Friday, just three days after launch, following a swift backlash over privacy. The tool, which used public Instagram photos to generate images, was an automatic opt-in — drawing sharp criticism from SAG-AFTRA and actor Hannah Einbinder. Meta admitted the feature 'missed the mark' and disabled it. The reversal underscores growing regulatory and public pressure on how Meta uses user data for AI, adding to a string of recent privacy and security incidents, including an EU investigation and a high-profile AI chatbot breach. This quick retreat may signal internal friction between aggressive AI deployment and risk management, potentially slowing future product rollouts.
At the time of this announcement, META was trading at $668.02 on NASDAQ in the Technology sector, with a market capitalization of approximately $1.7T. The 52-week trading range was $520.26 to $796.25. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.