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sigmoid10 | 3 days ago

>Is she paying for it? That is the only question that matters in the end.

Don't underestimate advertising. Noone pays for Facebook or Google search. Yet the ad business with a couple billion users seems profitable enough to fund frontier LLM research and inference infrastructure as a side-gig in these companies. Google only rushed out AI overview because they saw ChatGPT eating their market share in information retrieval and Zuck is literally panicking about the fact that users share more personal details with OpenAI than on his doomscrolling attention sinks.

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SlinkyOnStairs|3 days ago

> Don't underestimate advertising.

OpenAI is talking out of their ass with their advertising plans. Meta and Google are an advertising duopoly, extremely anti-competitive, and basically defrauding their own customers. OpenAI can't just replicate that.

Worse still is that OpenAI has no competitive edge. All the hype around their advertising plans is based on the idea that they can blend the ads right into the response, a turbocharged version of Native Advertising.

This is explicitly illegal. Very explicitly.

The US' FTC may have been declawed by the current US government, but the rest of the west will nuke them from orbit over it. Doubtless OpenAI will try some stunt alike marking the entire LLM response as "this is an ad", but that won't satisfy the regulators.

This only gets worse with further problems. An LLM hallucinating product features is going to invoke regulator wrath as well, and an LLM deciding to cut off the adcopy early will invoke the wrath of the advertiser.

> Yet the ad business with a couple billion users seems profitable enough to fund frontier LLM research and inference infrastructure as a side-gig in these companies

Also important: Not anymore. The tech giants are now issuing quite a lot of debt to pay for the AI plans.

sigmoid10|1 day ago

If that were true Meta and Google wouldn't be so desperate to get in the game. And don't think that other nations would step in against abusive marketing practices. The EU has been battling uphill for decades and the only ones who had some moderate success for user rights are private groups like NYOB. There is no law that will save the old tech companies and they know it.

parliament32|3 days ago

> This is explicitly illegal.

Is it really any different than product placement in TV shows/movies?

nextlevelwizard|3 days ago

Maybe I am underestimating how suggestible average people are as someone who has never in their lives clicked on an ad I just can't see ads being anything but a deterrent for using the service

sigmoid10|3 days ago

>Maybe I am underestimating

You sure are. And it sounds like you are also underestimating the effect yourself as well. In fact this perception is so common that there is even a name for it in psychology: Third-person effect. Many people believe that advertising does not affect them. But ironically, the more you believe so, the more likely you are to fall victim to particular types of advertising. And in general your response to ads will be very similar to everyone else's. These "annoying" ads that you "would never click on" are just badly personalized or badly placed ads. That's the only type that gets stuck in your mind when you think of ads, based on your personal biases. But the major tech companies have spent the last one-and-a-half decades on perfecting the psychology of advertising. You might think you are immune, but you are certainly not. Every buying decision you have made in the last 10 years was almost certainly influenced to some degree. Just not always consciously. And I'm willing to bet that a lot of buying decisions were already heavily influenced by ChatGPT, even before their shopping feature. OpenAI just didn't profit on them as much as they could.

smiley1437|3 days ago

I agree with you, I can't stand ads

However, I believe an ad it still influences you subconsciously as long as it is in your sight line.

I wouldn't be surprised if there is a lot of investigation into subtly slipping advertising in the LLM responses the way Korean dramas have product placement right in the storyline (Subway, bbq chicken, beverages, makeup, etc).

minraws|3 days ago

Ads aren't just for click through, they are for suggestions, and mind share as well.

You can't click on the budweiser logo when watching super bowl ad. But if you sit in your chatgpt window all day then it's probably worth it for advertisers to expect to build familiarity with brands they advertise.

skeptic_ai|3 days ago

Imagine subliminal messages being sent in the llm responses carefully created for max impact on you. I’m sure many companies will pay to recommend their product on ChatGPT.

echelon|3 days ago

> Maybe I am underestimating

Advertising is one of the biggest markets on the planet. Meta is nearly a $2T company and is making record profits.