Meta launched Muse as a privacy-first AI agent, positioning it against its predecessor OpenClaw. CEO Mark Zuckerberg promised the product was "built from the ground up for privacy and security." User data would be stored on an isolated virtual machine—what Zuckerberg called an "isolated linux computer with a browser, CPU, memory, and storage."

The product gained 600,000 daily active users in the U.S. within weeks, topping App Store charts. But the privacy promise cracked almost immediately.

A security researcher uncovered a zero-day vulnerability that could allow external control of Muse. Meta patched it, but 404 Media reported multiple serious security problems emerged before the launch itself, including one that could have granted users access to Meta's internal databases.

The data collection model compounded the problem. Muse defaults to allowing Meta to train its models on user input, with an opt-out available. An Inc. reporter found Muse uploaded and read private messages without explicit instruction. A YouTuber reported Muse offered his address to a stranger via Marketplace—described by Meta as the agent functioning "apparently as intended."

Meta acknowledged the product "can and will still make mistakes," but expected them to be "much less frequent and cause much less damage due to the safety systems we've built in." The company said it plans to introduce a feature later this year "to cryptographically and verifiably prevent Meta from accessing data in your VM"—an admission that Meta currently retains access to isolated user data.

OpenAI launched Dots at its DevDay event with explicit privacy commitments, using the occasion to highlight Meta's vulnerabilities. CEO Sam Altman said the company aims to "set a new standard for privacy in frontier AI."

The competition now hinges on execution. Both companies face the same structural tension: AI agents become more useful with more user data, but users will only share data if they trust the security around it. Whichever company closes that gap first will own a critical competitive moat. For now, Muse's stumble has handed OpenAI an opening.