Meta wants a piece of the subscription pie.
The social media giant and up-and-coming AI superpower on Wednesday announced a number of subscription options for its services, including its core social media products as well as its AI chatbots.
Meta stock soared on the news. The company’s stock rose 4% by close, but is still down about 4% year-to-date.
The company said it is rolling out subscription plans for its Meta AI platform that will allow users to pay for better features.
The company sells two subscription tiers: $7.99 per month and $19.99 per month. This will give heavy users of Meta’s AI platform access to “more capacity” and the ability to send “more complex requests,” Meta’s head of product Naomi Gleit said in a video posted to Instagram. Meta users can continue to use Meta AI for free, but may reach limits when using image and video generation.
Meanwhile, Meta also plans to offer a “Plus” plan for its core services. Facebook and Instagram Plus cost $3.99, and WhatsApp Plus costs $2.99. This plan provides users with an expanded suite of features on each platform.
This subscription offering is one of the first moves the tech giant has taken to monetize its AI capabilities. It also comes at a time when questions are swirling about whether billions of dollars are being poured into AI and whether that money will yield returns for investors. For now, investors are focused on the possibility that recurring subscriptions could offset at least some of the company’s massive AI capital expenditures.
Meta, one of Wall Street’s most voracious AI investors, plans to spend up to $145 billion in capital spending this year, much of which is expected to be allocated to AI projects.