Meta has confirmed it is building Arena, a standalone app for prediction markets powered by artificial intelligence. CEO Mark Zuckerberg instructed a team to develop the platform earlier this month.

Users will guess outcomes of real-world events on Arena. Meta’s AI will make personalized market recommendations and resolve predictions. The company is testing the concept now ahead of wider release.

Prediction markets have exploded as gambling platforms in recent years. They let users bet on elections, sports, and geopolitical events. Meta’s version adds an AI layer that learns individual preferences and surfaces relevant markets.

The move reflects Meta’s broader push into monetizable AI applications. The company has spent billions developing inference infrastructure and large language models. Arena offers a direct revenue stream tied to engagement and wagering.

Zuckerberg has positioned prediction markets as a new category distinct from sports betting. The AI angle differentiates Meta’s approach from existing platforms. Personalized recommendations should drive higher engagement than traditional market feeds.

Meta faces regulatory scrutiny around gambling and prediction markets. The company will need to navigate licensing requirements as it launches Arena across different regions.