MENLO PARK, California: Meta Platforms is gearing up to introduce a paid subscription service for its AI-powered chatbot, Meta AI, as it looks to compete with OpenAI and Microsoft's advanced chatbot offerings, a source familiar with the matter told Reuters.

The subscription service's test phase is expected to roll out in the second quarter of this year. However, the source noted that significant revenue generation from the initiative is unlikely until at least 2025.

Meta AI, launched in September 2023, functions as a virtual assistant powered by large language models designed to handle reasoning tasks. When contacted by Reuters, the company declined to comment on the reported plans.

This move aligns with Meta CEO Mark Zuckerberg's broader strategy to strengthen the company's position in the artificial intelligence space, where competition with Microsoft-backed OpenAI and Google is intensifying. In January, Zuckerberg announced Meta's intention to invest up to $65 billion this year to enhance its AI infrastructure.

Beyond chatbot development, Meta is also expanding its AI research into physical robotics. The company is reportedly setting up a new division within its Reality Labs unit to work on AI-driven humanoid robots capable of performing physical tasks.

Additionally, Meta is expected to launch a standalone Meta AI app later this year, complementing its existing integration within Facebook and Instagram, according to a CNBC report citing sources familiar with the matter.

Major tech firms have been pushing for AI investment. Microsoft recently announced plans to allocate approximately $80 billion toward data center expansion in fiscal 2025, while Amazon has projected its AI and cloud infrastructure spending will surpass the estimated $75 billion earmarked for 2024.

Meta's entry into the AI subscription market highlights the growing race among tech giants to monetize artificial intelligence. They are leveraging vast investments in computing power and infrastructure to offer advanced AI services to consumers.