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btheunissen | 3 months ago

The obvious knob to turn here is that the floor price of ad auctions will be incredibly high, with the justification that AI is expensive.

As someone outside of the ad-tech space it blows my mind how much Instagram and Google ads cost these days, and OpenAI would certainly want to price their ad offering as more “premium” (see: $$$).

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tim333|3 months ago

The pricing doesn't really work like that - it's more an auction amongst different companies wanting to sell their services so the price comes down to how much the companies make from customers acting on the ads. Which is why you have to pay crazy money to advertise a mortgage for example - the mortgage companies make a lot if they sell one. I think OpenAI could do well at it.