"Fidji Simo smartly frames it as wanting to ensure they can bring their AI to more people, but at the same time, as everyone is well aware by now, it costs a lot of money to do that. Charging for more/better/faster access has worked well to date for the company, but that model will never be able to scale the way 'free' and/or 'cheap' can."
"You either die as an ad-free service or you live long enough to become an ad vessel. That's a bit unfair. But it's directionally true. And it's exactly why you hire someone like Simo to be the CEO reporting to the CEO. She has all the experience to make this work for OpenAI, not only thanks to her Meta days, but her Instacart days as well."
Fidji Simo presents advertising as a way to expand AI access while acknowledging the high operational costs of large-scale models. Subscription and premium plans have helped, but those revenue sources cannot scale as effectively as free or low-cost, ad-supported models. Hiring Simo leverages experience from Meta and Instacart to implement advertising across different product types. A new form of advertising will likely be needed for conversational AI, potentially resembling search-oriented models like Google's rather than traditional social ads. Significant uncertainty remains about how ads will integrate into the ChatGPT experience and whether ad revenue will suffice.
Read at Spyglass
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