From Pymnts · PYMNTS · · 1m 50s
Meta charges for AI to fund its $130 billion bet
Meta launches paid subscription bundles with AI features as it seeks new revenue beyond ads.
In brief
Meta launches paid subscription bundles with AI features as it seeks new revenue beyond ads. Meta is betting that enough users will pay $7.99 to $19.99 monthly for AI-powered features to help offset its massive spending on AI infrastructure. Originally reported by Pymnts.
Meta launches paid AI bundles
Meta One combines Instagram Plus, Facebook Plus and WhatsApp Plus into two consumer tiers: Core at $7.99 and Premium at $19.99 monthly, with AI image generation and advanced editing as main draws.
15 million sign up in early tests
Meta One has reached 15 million subscriptions and trials to date. More than half of early subscribers used both AI and expression features, with Restyle and voice effects among top reasons for signing up.
AI spending demands new revenue
Meta spent $31.08 billion on capital expenditures in Q2 and projects $130 billion to $145 billion for 2026. Advertising still supplies nearly all revenue, making paid tiers essential to offset AI costs.
Single-app plans already profitable
Instagram's daily revenue averaged $1.2 million as of September 9, up 475% from the week before. Facebook reached $528,000, up 143%, showing strong early monetization.
Analysts forecast billions in gains
BNP Paribas forecasts subscriptions will add $13.5 billion in revenue by 2028, while Truist estimates $20 billion by 2030. Meta moved faster than Google and OpenAI in testing paid AI tiers.
Power users shrinking despite growth
Six in ten U.S. consumers use dedicated AI platforms, but power users likely to hit usage caps fell to 8.5% of consumers, down 24% from September 2025. Meta's $7.99 tier targets mainstream users instead.
Expansion plans include glasses
Meta plans to extend Meta One to its Edits video app and AI glasses over time. The 3.6 billion daily active users across Meta's apps provide a massive distribution advantage.
What to remember
Meta is betting that enough users will pay $7.99 to $19.99 monthly for AI-powered features to help offset its massive spending on AI infrastructure.
