OpenAI is rapidly expanding its global advertising business to attract more users to its platform amid its push to meet ambitious revenue targets.
“The revenue that we make from the ads offering is going to subsidize and grow access to information,” OpenAI advertising chief David Dugan told reporters on Monday at the Cannes Lions International Festival of Creativity.
After years swearing off of advertising, the company now hopes its sprint into the ad business will help it generate $100 billion by the end of the decade. That’s about half of Meta’s current ad revenue. ChatGPT launched ads in February for users of its free and “go” tiers, making ads populate in queries and conversations. The AI giant said it already has thousands of advertisers in its seven test markets, including in the US, Canada, UK, Australia, New Zealand, Japan and South Korea. OpenAI said it plans to launch in Brazil and Mexico in the coming weeks, and eventually in India.
But while ChatGPT astounded users for years when it burst onto the scene writing essays in seconds and rap verses instantaneously, its advertising offering is less transformational. Users see ads targeted to them based on what, when and how they are researching, said Dugan.
While the company remained mum about the specific revenue that advertising was bringing in, it said there were some signs that current users weren’t alienated by new AI ads in test markets. Dugan said the frequency that users were seeing an ad and clicking away - was “far lower” than when the company began testing ads.
That’s odd, given that everyone I know endlessly complains that there are still sites that don’t endlessly serve up ads. Surely, everyone will like this more, and the anticipated returns will come to fruition just as all “AI” prognostications have.
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House of El - AL: OpenAI’s $1 Trillion Bullsh*t Is Falling Apart
This video covers the topic very well (and I appreciate and recommend her channel overall).
The long and the short of it is, they fucked their product up. Most of us here are not terribly fond of AI, but let’s for a moment just take it for granted that it is a product that does a thing. OpenAI will swap models out on the backend based on your use case and if it detects certain patterns, also as a sort of protective guard rails in some ways. It’s also extremely unclear on billing and token usage (paraphrasing, I’m not intimately familiar with the details myself, watch the video). This is highly problematic if you’re trying to build a service on top of it. AI is extremely finicky and not having clear ideas on token usage limit or what models may be running on the backend can affect that. This has rightly made even the devout users upset at these choices.
And from what I understand in the video, this is not a case with other providers where you stick with exactly the specified model and token usage and billing are more clearly indicated.
So now not only are they fighting a losing battle against the profitability of the entire tech and service model, they have a spurned and dwindling customer base to contend with, too. They are turbo fucked. Still, no one can say how or when this all finally goes tits up, but at least it’s kind of funny.
Interesting, I’m in NZ and have not seen a ad yet - not that I use it very often. I wonder how the ads are being served and if uBlock and AdGuard are blocking them?
who cares. just be happy you aren’t seeing more bullshit lies from corrupt arsewipes that deserve a fate worse then death
