Meta to Test Paid Subscription for AI Chatbot Amid Growing Competition
Meta Platforms (META.O) is preparing to test a paid subscription service for its AI-enabled chatbot, Meta AI, in a move similar to OpenAI and Microsoft’s premium chatbot offerings. A source familiar with the matter told Reuters on Thursday that the test will begin in the second quarter of this year, though significant revenue is not expected until 2025.
Meta AI Subscription and Expansion Plans
Meta AI, launched in September 2023, is a virtual assistant powered by large language models designed to perform reasoning tasks. While Meta has not officially commented on the subscription model, this move signals its intent to strengthen its position in the competitive AI landscape.
CEO Mark Zuckerberg has made AI a top priority, announcing plans to spend up to $65 billion this year on expanding the company’s AI infrastructure. The company is also setting up a new division within its Reality Labs unit to develop AI-powered humanoid robots capable of assisting with physical tasks.
Additionally, they plan to launch a standalone AI app in the second quarter, alongside its integration with Facebook and Instagram, according to a CNBC report.
Big Tech’s Race to AI Dominance
The race to dominate AI continues to intensify, with major tech companies investing heavily in AI infrastructure. Microsoft recently announced plans to spend around $80 billion in fiscal 2025 to develop data centres, while Amazon expects its 2025 investment to surpass the estimated $75 billion planned for 2024.
With the success of ChatGPT, companies are increasingly prioritising AI development. Meta’s latest move positions it to compete more aggressively against Microsoft-backed OpenAI and Google in the fast-evolving AI sector.
With inputs from Reuters