ELD Asset Management analysis of Meta's Midjourney licensing to integrate AI image/video generation and its market implications.
Meta Platforms has confirmed a groundbreaking licensing agreement with Midjourney, a move poised to revolutionize AI-powered image and video generation across its ecosystem of platforms, including Facebook, Instagram, WhatsApp, and Messenger. The announcement, made public on August 22, 2025, is expected to enhance advertising efficiencies, expand creative tools for small businesses, and bolster governance measures regarding AI-generated content.
Midjourney, a community-backed AI lab, will retain its independence while contributing its advanced aesthetic technology to Meta’s products and services. With this integration, Meta aims to accelerate creative workflows, allowing advertisers to generate and test more content with reduced production costs. According to ELD Asset Management, which provided independent analysis on the deal, these advancements hold significant implications for advertisers and marketers.
"Lower unit costs and faster iteration speed allow marketers to test more ideas within a single campaign cycle, with benefits most evident in stronger conversion rates during the next twelve months", said Jason Harrison, Senior Vice President at ELD Asset Management. He further noted that the partnership particularly aids smaller enterprises, which often lack access to professional-level design capabilities.
Although the financial terms of the agreement remain undisclosed as of August 29, 2025, Midjourney’s subscription pricing - ranging from USD 10 to USD 120 per month - alongside its reported 2023 revenue of approximately USD 200 million, provides a glimpse into the scale of the collaboration.
Meta’s integration of Midjourney technology also emphasizes governance and risk management amid increasing concerns about the misuse of AI tools. For instance, litigation filed in June 2025 by major studios against Midjourney raises questions about intellectual property practices. In addition, prior cases of AI misuse, such as a USD 25 million corporate payment fraud facilitated by a deepfake in 2024, highlight the ongoing challenges of AI security.
Jason Harrison underscored the importance of mitigating these risks, stating, "These risks become manageable when provenance signals, account verification, and enforcement procedures advance alongside new product functions." Meta has already implemented measures such as labeling AI-generated content, restricting political advertisers from using generative tools, and deploying algorithms to detect manipulated materials.
The partnership also places Meta in direct competition with OpenAI, Google, and Anthropic - all key players in the AI space. As the company ramps up its capital expenditures and navigates regulatory oversight, the integration of Midjourney’s capabilities may serve as a strategic differentiator in 2025’s evolving digital landscape.
By bringing Midjourney’s cutting-edge technology into its platforms, Meta is not only enhancing tools for advertisers but also expanding access to creative resources for smaller enterprises. The pact underscores the company’s commitment to innovation while addressing critical concerns around AI governance and security, marking a significant development in the tech and advertising industries.
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