Meta is planning to launch its own prediction market app to compete with companies like Kalshi and Polymarket in a booming sector that some analysts project could become a $1 trillion industry in the coming years.

Meta CEO Mark Zuckerberg has instructed a team to start building a standalone app called Arena where people can guess the outcome of real-world events, according to two employees who were not authorized to speak publicly about the project.

Meta’s plans to build a prediction market app were first reported by The New York Times.

NPR obtained internal Meta documents about the effort that have not been previously reported.

The documents describe how instead of wagering real money, users of the new app will receive “a daily virtual allotment” of “play money” that can be used to bet on “the outcome of future events.”

On the most popular prediction market apps, Kalshi and Polymarket, traders bet billions of dollars a week on everything from what Rotten Tomatoes score a forthcoming movie will receive to when Israel will drop bombs on Iran.

While it is unclear what range of topics Meta hopes to cover with its prediction market, the company is planning to use artificial intelligence to drive the service, according to the internal documents.

The new app, which has been codenamed “Antwerp” and “FBForecast,” will use Llama, the company’s large language model, to automatically generate questions from trending topics. Meta’s AI will also make “personalized market recommendations” to users who download the app, according to the documents.

That same artificial intelligence will resolve markets, according to the documents. In other words, AI will have the final say over whether something did or did not happen. As on Kalshi and Polymarket, the wagering happens around “yes” or “no” questions. This AI-driven resolving process will happen in “near real-time,” the documents state.