Microsoft · Google · Amazon · Meta · Mark Zuckerberg · Facebook · CNBC Technology
Trying to sell social media services to businesses has also been a struggle
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Despite an uphill battle, some analysts are optimistic that Meta can find a new route to revenue in AI.
Key facts
- In April, Meta raised its 2026 guidance for AI-related capital expenditures to between $125 billion and $145 billion, up from a prior range of $115 billion to $135 billion
- Analysts at Wolfe Research wrote in a note that day that subscriptions could contribute up-to $3 billion in Meta's total revenue for 2027, growing to $16 billion by 2030
- The Meta AI subscriptions announced this week will cost $7.99 and $19.99 a month, depending on certain features and capabilities
- In its earnings report last month, Meta said that nearly 98% of its $56.3 billion in first-quarter revenue came from advertising
Summary
Meta is once again trying to prove it can make money by doing something other than selling ads. The company said this week that it will begin testing two subscription services for its ChatGPT-like Meta AI app and website. Also this week, Zuckerberg said at Meta's annual shareholder meeting that a potential cloud computing business is " definitely on the table," a move that could eventually pit the company against Amazon, Microsoft and Google in cloud infrastructure. Since Zuckerberg's company, previously known as Facebook, began selling digital ads almost two decades ago, advertising has been its only real business. Meta recorded its fastest growth rate for any quarter since 2021, showing that the online ad market is currently as robust as ever.