Meta has struggled at selling anything other than ads. Will AI be different? Meta is introducing new subscription services for its Meta AI app and exploring a cloud computing business as it attempts to generate revenue outside of its dominant advertising model. Historically, Meta has struggled to monetize products beyond ads, with past ventures like the Portal device, Oculus, crypto, and Workplace failing to gain significant traction or profitability. Despite these setbacks, analysts see potential in AI subscriptions, projecting substantial revenue growth, though challenges remain in competing in enterprise sectors and cloud infrastructure.

• Meta is launching subscription services for its AI app and website, testing them in Singapore, Guatemala, and Bolivia.
• The company is also considering a cloud computing business, which could position it against tech giants like Amazon, Microsoft, and Google.
• Advertising accounts for nearly 98% of Meta’s revenue, highlighting a long-standing reliance on this single business segment.
• Previous non-advertising ventures, including the Portal device, Oculus VR, Libra cryptocurrency, and Workplace, have largely failed to achieve success.
• Analysts are cautiously optimistic about AI subscriptions, with some projecting significant revenue contributions by 2030.
• Challenges include Meta’s focus on direct-to-consumer markets and the difficulty of building enterprise-level businesses and cloud infrastructure.
• Meta’s increased capital expenditures on AI infrastructure signal a significant investment in the technology.
• Past attempts by other companies to enter the cloud business using existing data center capacity have not been successful.