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UPDATE: Liz Gannes at All Things D has confirmed that Twitter’s CEO Dick Costolo will announce the new photo sharing service on Wednesday.
Costolo is scheduled to speak at D9, the conference hosted by All Things D, and officially launch the new service.
EARLIER: In another swipe at third party developers, Twitter has plans to launch its own photo sharing service that’s similar to those like TwitPic or YFrog.
Sources close to the matter tell TechCrunch the new service could launch as early as tomorrow.
It will likely work much like the current services out there by hosting photos taken with your mobile device and linking to them with a shortened URL.
Twitter has already told developers not to develop rival Twitter clients, although that doesn’t seem to be stopping anyone.
But when it comes to photo sharing, Twitter has played nice with third parties. In fact, the official Twitter app allows users to select which service they want to upload photos or video to.
A Twitter-owned photo sharing service could be pretty bad for Twitpic, Yfrog, and any other Twitter photo service out there.