Meta has struggled at selling anything other than ads. Will AI be different? (www.cnbc.com)

Meta has announced a strategic shift toward generating revenue beyond its traditional online advertising model, aiming to monetize artificial intelligence through subscription services for its Meta AI app and website. The company is testing these paid offerings in select markets, with plans to offer tiered subscriptions that could contribute up to $3 billion in revenue by 2027, potentially expanding to $16 billion by 2030. This pivot marks a significant opportunity for Meta to capitalize on the AI boom, even as it acknowledges the historical challenges it has faced with non-advertising ventures. Despite optimism from analysts who see AI subscriptions as a pathway to enhancing user engagement on Meta's platforms, there are substantial hurdles ahead. Meta has historically struggled to find success outside advertising, exemplified by failed hardware endeavors and lackluster enterprise services. Any move into cloud computing would require extensive building of technology and support infrastructure, a difficult feat given the dominance of established players like Amazon and Microsoft. Ultimately, while Meta's AI push presents exciting possibilities, analysts caution that navigating this new terrain may prove as challenging as past attempts to diversify its revenue streams.