Hunterbrook links Innodata to development of Meta's Muse AI agent; INOD stock rallies

Innodata, a mid cap whose business centers on training other companies’ AI models, may have helped train Muse, the personal AI agent by Meta, writes Hunterbrook Media. The investigative news outlet says its affiliated fund, Hunterbrook Capital, held a long position in Innodata. The news sent Innodata stock soaring almost 15% on Tuesday.

Hunterbrook bases its report about Innodata’s role in developing Muse on interviews with former employees of the mid cap, an analysis of its job postings, and public statements by top executives. Former employees told the outlet that Innodata had worked closely with Meta’s AI organization across multiple projects for many years. They believe the relationship continued even after Meta invested in Innodata rival Scale AI in June 2025. Supporting that view is an August statement from Innodata CEO Jack Abuhoff that the company had won “a significant new program with our largest customer covering personalization of long-horizon agents.” Hunterbrook Media believes the description resembles Muse and also concludes that Meta is Innodata’s largest customer.

The tech giant launched Muse on September 8. Less than two weeks later, its namesake app, through which the tool is available, had climbed to be the top free app in Apple’s U.S. App Store. Hunterbrook believes the AI agent’s launch could be only the beginning for Innodata. Its theory is that the mid cap could generate recurring revenue as Meta continues updating Muse. “It is the possibility that a product Meta keeps improving will require repeated rounds of training material, testing and human feedback,” the report states.

Hunterbrook acknowledged that Innodata still faces questions. Short sellers Wolfpack Research and J Capital have taken positions against the company because they are skeptical of its AI capabilities. In addition, Innodata’s management left open the possibility during its latest earnings call that revenue growth could slow quarter over quarter. Revenue rose 58% year over year in April-June to $92.1 million.

Those factors nevertheless did not prevent Hunterbrook Capital from taking a long position in Innodata, according to the report. The size of the position was not disclosed.

Although neither Meta nor Innodata has confirmed Hunterbrook’s reporting, Innodata shares gained almost 15% on Tuesday to $70 apiece. The stock was also higher in Wednesday premarket trading.

Three Wall Street analysts cover Innodata: two rate the stock a “buy,” while one has an “overweight” rating. The average target price is $123.67 per share, implying almost 77% upside from the last close.