Meta has a new plan for turning AI into a fashion statement. The company just announced the Muse Charm, an AI device that looks a lot like the Tamagotchi, the digital pet toy from the late-90s and early-mid-2000s. The idea is simple: make an AI accessory that hangs off your bag or keys, just like the bag charms that have become a major trend among young people.
The Bag Charm Boom
Gen Z has turned small objects into status symbols. Lip glosses, hand sanitizers, sunblocks, and fragrances now come attached to keychains and bags, creating a market that brands are rushing to tap. The trend started with beauty products being treated as fashion accessories, and it has since spread to almost anything a person might carry.
One notable example is the Rhode lip case, a viral product that stuck lip gloss onto a phone case. The idea caught on quickly, and brands began to follow. The brand behind Rhode saw $212 million in annual net sales from roughly 10 products, according to Vogue.
The Labubu Case
The Labubu bag charm is another success story. Its sales exploded, growing Pop Mart’s revenue to $1.8 billion in 2024, a 7x jump from 2019. That kind of growth shows how quickly the market can move when a single product finds the right audience.
An analyst firm estimates the global bag charm market will grow to over $1 billion by 2030. That projection suggests the trend is far from finished.
Coach’s Cherry Charms
Coach’s cherry charms have become a favorite among young consumers. The brand’s version of the trend has been widely copied, and other companies are following the same path. The Muse Charm is positioned as an AI device designed to follow the tech-as-fashion-accessory trend.
The Muse Charm’s Design
The Muse Charm is customizable, letting users design their own avatar. The design borrows heavily from the Tamagotchi, the handheld digital pet toy that dominated the late-90s and early-mid-2000s. The comparison is not accidental: Meta is betting that the nostalgia of that era will draw in younger buyers who grew up with the original device.
Old Tech as Fashion
There is a broader trend at play here. Older tech like digital cameras, flip phones, iPods, CDs, cassette tapes, home phones, and wired earbuds have all made a comeback. Young people are finding new uses for old devices, and the Muse Charm fits squarely into that pattern.
Some young people are repurposing older Apple Watches as keychains or charms. TikTok videos show different ways to use the watch when it is not on the wrist. The keychain watches are often adopted by younger women as fashion accessories first.
Cyberdecks and Clamshell Purses
The trend extends beyond simple accessories. Some young women have crafted portable “cyberdecks” — mini computers — fitting them inside clamshell purses or custom cases and bedazzling them with jewels, flowers, stickers, and pearls. The Muse Charm is a smaller version of the same impulse: taking tech and dressing it up as something personal.
The Privacy Problem
Meta has a history of privacy violations. The company has settled with the FTC over charges that it made users’ private information public without consent. In 2023, the FTC charged Meta with violating a privacy order filed after the 2019 settlement. Meta has faced repeated hearings before Congress over harms to minors and has lost or settled multiple lawsuits over similar issues.
The company has also faced scrutiny for its handling of user data and harms to minors. Those concerns are part of the background for any new product, and the Muse Charm does not escape them.
Monetizing the Charm
Meta said it will monetize Muse by taking a small fee from transactions. The details of how that fee works are not fully explained, but the basic model is clear: Meta wants a share of the money that passes through the device.
What This Means
The Muse Charm is a bet on two trends at once. It is a bet on the bag charm market, which has proven itself with Labubu and Coach. It is also a bet on AI as a fashion accessory, a space that is still developing but has shown promise with early products.
The comparison to the Tamagotchi is telling. That toy was a hit because it was a small, personal object that demanded attention. The Muse Charm is trying to be the same thing, but with AI inside.
| Product | Company | Market Position |
|---|---|---|
| Muse Charm | Meta | AI accessory, following bag charm trend |
| Labubu charm | Pop Mart | Sales grew 7x from 2019 to $1.8 billion in 2024 |
| Coach cherry charms | Coach | Favorite among Gen Z consumers |
The Bottom Line
The Muse Charm is a clever move. It takes a trend that is already working and applies it to AI. Whether it succeeds depends on whether young people want an AI device hanging off their bags.
The bag charm market has grown fast, and the Muse Charm is positioned to capture some of that growth. But the privacy record is a weight that no amount of charm can remove.
The paper is amused by the irony of it all. Meta, a company with a long record of privacy settlements and Congressional hearings, is now selling a product that turns AI into a fashion accessory. The irony is not lost on anyone who has followed the company’s history.
The Muse Charm is a small device with a big question behind it: can tech be fashion, and can a company with a troubled past sell that fashion without losing its customers?
Key facts:
– Rhode brand saw $212 million in annual net sales from roughly 10 products, per Vogue
– Pop Mart’s revenue grew to $1.8 billion in 2024, a 7x jump from 2019
– Analyst firm projects the global bag charm market will reach over $1 billion by 2030
– Meta settled with the FTC over charges it made users’ private information public without consent
– In 2023, the FTC charged Meta with violating a privacy order filed after the 2019 settlement
– Meta said it will monetize Muse by taking a small fee from transactions
Where the paper stands
The paper backs Meta’s plan to turn AI into a fashion statement, since it is a narrow consumer product rather than a new way of regulating AI, and is against letting big companies hide their failures, which this particular announcement does not appear to involve.
The Muse Charm is a small, customizable AI accessory that follows a proven trend in bag charms. It is not a new regulatory regime, and it is not a direct threat to individual freedom. The paper supports narrow rules against direct harm, such as forcing companies to disclose safety failures they hid, and opposes broad rules that hand the market to the incumbents.
The $212 million figure, the 7x revenue growth, and the $1 billion estimate come from Vogue and an analyst firm, not independent verification.
See the video the story is built around at TechCrunch.
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