Interesting and likely way to optimistic. Let's say you are right, and they manage to build a meaningful ads business at $80B/yr, the main thing that pops out is the massive gap between what infrastructure cost commitments are, and revenue.
I can't get Altman's statement that "ads are a last resort" out of my head. What does this say about the state of OpenAi's ability to monetize?
Should you apply any sort of negative multiplier based on the fact that most Google Search ads that get clicked on are above the organic results, while most AI ads appear below the organic results (which typically give the consumer the best answer they were looking for already)? It feels like the estimated TAM meaningfully hinges on this difference.
Good point. What I'm wondering is if ChatGPT ads will get better CTR than Google search, independent of placement.
Interesting and likely way to optimistic. Let's say you are right, and they manage to build a meaningful ads business at $80B/yr, the main thing that pops out is the massive gap between what infrastructure cost commitments are, and revenue.
I can't get Altman's statement that "ads are a last resort" out of my head. What does this say about the state of OpenAi's ability to monetize?
Should you apply any sort of negative multiplier based on the fact that most Google Search ads that get clicked on are above the organic results, while most AI ads appear below the organic results (which typically give the consumer the best answer they were looking for already)? It feels like the estimated TAM meaningfully hinges on this difference.