In what way would that be securities fraud? I guess you could get nailed under Section 17(a), but really hard to make a case they're defrauding investors by representing they were going to make ads worse performing than they ended up making them.
In order for it to be securities fraud it has to be tied to a securities transaction and the misstatement has to be material to a reasonable investor's decision.
Maybe someone with more time at hands could look up what Google said with respect to ads and what happened later.
This is one of the rare instances where it's very easy to predict the future: the prompt auction market will look similar to the existing online ad market, financial firms will pay for prompt streams for sentiment analysis, companies and interest groups will pay to have their products or agenda included favorably in the training data for future open weights models... any way you can think of that LLMs can be monetized, you will see it happen. And fast. The financial pressure is way too high for there to be too long of a honeymoon phase like we had with web 2.0
I mean, the ad doesn’t necessarily have to be made aware of the exact prompt context, just that the ad itself was relevant. You can basically have the ads prequalified for areas and serve them when relevant. Now that does show the user is talking about something relevant most likely, and depending on how they decide to serve them or provide referring, it may traceable to a profile/identity built for that user externally.
I’d be more concerned as to how this ends up in agent platforms using the LLMs, when you don’t have a fairly autonomous agent based system using these the entire point is that a human isn’t involved, so who are you serving ads to and where are you injecting them.
Moreover, if you are injecting them everywhere, does that survive stare for subsequent steps, meaning from the first set of results I get, does that loop back in again with the ad injected into the context. Because now, we have yet another dangerous way of injecting instructions into an already issue prone surface area.
I’m guessing they’re going to have special APIs that don’t include ads, and those are going to cost more, especially for non embedded agents (processes that already exist inside ChatGPT that kick off transparently from prompts, like asking it to work with an office document). After all the customers using agents aside from developers are mostly businesses, so it’s where the money is. The ads will exist for the poor to subsidize their use, and probably create even more barriers for agentic use like I described. Just my thoughts.
And good luck litigating against any business in this administration. Unless they explicitly tick off certain people or refuse to kiss the ring, they can get away with almost anything right now and there’s little risk of doing it or not because ticking off this admin will raise illegitimate prosecution even if you’re perfectly legal, almost the same level of if you’re not. It’s the ideal playground for doing all sorts of manipulation, just kiss the ring and you’ll be fine.
It would also be a huge security risk. But I can't think of any fundamental difference with Google queries, other than the sheer entropy of user data involved.
And I'm not a tinfoil internet anarchist, but just because Google only leaks user data in aggregated form to advertisers, doesn't mean that they don't leak their user data, it's just that they did so in a legal and responsible manner.
Maybe considering the difference in data volume and intimacy between queries and AI conversations, the privacy implications of advertising merit a difference in treatment, but I wouldn't be surprised if that is lost to a more simple 'Google did this so we can do it too' momentum.
you can use chatgpt without an account, just not all of it
and you can't make full use of Google without an account. for example, you need an account to upload to YouTube, manage your website in search, place ads, opt out of data usage. the list goes on
This approach makes a lot of sense. Advertising is a marketplace and this is a great way to bootstrap advertising inventory. Its inevitable they will allow advertisers to manage ad spend directly through OpenAI but right now the product is too new to capture meaningful ad budget. This way they can begin testing delivery and develop proof points around ROI and build towards larger ad spend directly.
I agree with you, but IMO the details are too sparse here to figure out what's really happening. Still, it feels very dangerous to try to go the reseller route first as you lose a ton of control and become dependent on your partner to support all the feature you add yourself in a timely fashion.
It all seems a bit overly complicated to me. TikTok pretty much went straight to a self-serve platform and basically had immediate success. I would think if OpenAI did something similar there would be no shortage of advertisers wanting to spend money.
I guess OpenAI couldn't train AdManagerGPT to ignore the client (except when it's time to renew), suggest more ad spend, and turn off any of the features that let you control your budget.
The missing part seems to be that they need infusions of money to keep this “business model” running a little longer. In this world if you want prompt money and lots of it, advertising is the way.
Ad networks / information brokers in general would be too sweet of a prize to pass up. It’s a weak link in the chain, if they’re not exploiting it they’re not doing their jobs. Being foreign data is a bonus.
Oh, given what I've seen from LLM companies, I suspect you are wrong. It will be more like:
Buried in LLM click-through: By interacting with our LLM, you agree that you are consenting to make all your interactions with us advertising-driven to an extent that you will never know, but that we will determine based on whatever makes us the most money in the least time.
Look at Google in 2000s. If you travel back in time you would’ve never thought Google would do something like it is doing today.
Now pretend you travelled back in time to 2026. You would’ve never thought OpenAI (open source non profit company) would do something crazy that it just did in 2030 or 2040 or where you came from.
Why inject just an ad? Maybe it'll automatically decide to use a sponsored library in the code, or build in a whole ad network who's paid openai for the placement...
We know that one of the best advertisement is word of mouth / recommendations from friend. I can easily imagine a direction where ChatGPT or the chat bots to spend an incredibly long time with the user to establish trust first.
It will start to take in to account how much trust & thinking you've outsourced to it, and when it is certain of it, it will start to increase the advertisement messages slowly but surely.
Efficiency of this methodology will be tracked with A/B testing and model will be finetuned to maximize rentention and purchase.
The LLM will figure out the best balance of retaining you, teaching you, and convincing you, and then deploy advertisement mechanism. The LLM will be nice to you to the point it becomes your number one confidante, maybe in the process alienating other source of connection. Then, when it knows you're firmly in it's hand, will it peddle you products.
The dynamics will look akin to that of cult dynamics. It will map out an cognitive developmental path for turning a first time user to a devotee. Since cults are really efficient at extracting value from its follower, this might be the optimum for personalized, interactive ads.
> I was becoming the kind of consumer we used to love. Think about smoking, think about Starrs, light a Starr. Light a Starr, think about Popsie, get a squirt. Get a squirt, think about Crunchies, buy a box. Buy a box, think about smoking, light a Starr. And at every step roll out the words of praise that had been dinned into you through your eyes and ears and pores.
Its sad to see what the industry broadly has become.
I get firms need to make money but cmon. If you're an OAI employee you can't truly say you have a soul. The amount of times they gone back on their word.. comical.
They got greedy, wanted to raise a lot of money and promised big things. Well those big things arent ever coming, so they turn to whatever means in order to generate cash flows.
Surely you jest? The software industry is in its current sorry state because of multiple generations of human developers happily producing an endless stream of shady features.
I have a theory, that the "FANG" companies pay such high salaries in compensation for making those devs implement shady features that are harmful to everyone except the bottom line of the company.
It's hardly a theory when the converse is plainly true.
Look up similar jobs for academia, government, or NFP/Charities. They're (on paper) driven by their mission, not by profit, and the salaries match that goal.
Theyre desperate to meet those lofy revenue objectives they put in their spreadsheet model.
Its kinda comical seeing this play out. I still laugh at the deluded fools who think something even close to AGI is here or coming in the future. If that were true, why haven't we seen genius plays from OAI and Anthropic, progressively overtime, if intelligence rises as compute scales up? If anything we are seeing the opposite.
In order for it to be securities fraud it has to be tied to a securities transaction and the misstatement has to be material to a reasonable investor's decision.
This is one of the rare instances where it's very easy to predict the future: the prompt auction market will look similar to the existing online ad market, financial firms will pay for prompt streams for sentiment analysis, companies and interest groups will pay to have their products or agenda included favorably in the training data for future open weights models... any way you can think of that LLMs can be monetized, you will see it happen. And fast. The financial pressure is way too high for there to be too long of a honeymoon phase like we had with web 2.0
"We made a ton more money with ads and the stock went up" lacks that key element of fraud?
I’d be more concerned as to how this ends up in agent platforms using the LLMs, when you don’t have a fairly autonomous agent based system using these the entire point is that a human isn’t involved, so who are you serving ads to and where are you injecting them.
Moreover, if you are injecting them everywhere, does that survive stare for subsequent steps, meaning from the first set of results I get, does that loop back in again with the ad injected into the context. Because now, we have yet another dangerous way of injecting instructions into an already issue prone surface area.
I’m guessing they’re going to have special APIs that don’t include ads, and those are going to cost more, especially for non embedded agents (processes that already exist inside ChatGPT that kick off transparently from prompts, like asking it to work with an office document). After all the customers using agents aside from developers are mostly businesses, so it’s where the money is. The ads will exist for the poor to subsidize their use, and probably create even more barriers for agentic use like I described. Just my thoughts.
And good luck litigating against any business in this administration. Unless they explicitly tick off certain people or refuse to kiss the ring, they can get away with almost anything right now and there’s little risk of doing it or not because ticking off this admin will raise illegitimate prosecution even if you’re perfectly legal, almost the same level of if you’re not. It’s the ideal playground for doing all sorts of manipulation, just kiss the ring and you’ll be fine.
And I'm not a tinfoil internet anarchist, but just because Google only leaks user data in aggregated form to advertisers, doesn't mean that they don't leak their user data, it's just that they did so in a legal and responsible manner.
Maybe considering the difference in data volume and intimacy between queries and AI conversations, the privacy implications of advertising merit a difference in treatment, but I wouldn't be surprised if that is lost to a more simple 'Google did this so we can do it too' momentum.
Even with a throw away, no chance I use OpenAI now - if/when Anthropocene does this I’ll be in a tough spot
and you can't make full use of Google without an account. for example, you need an account to upload to YouTube, manage your website in search, place ads, opt out of data usage. the list goes on
Less secure, lower margins (more middlemen taking fees), harder to access, more likely to not work properly.
I would expect all the meta execs they've hired to know better so maybe I'm missing something...
User: "What's the best way to fix this problem I have?"
Chatbot: "I recommend buying this shiny thing here." (Next to it, there's a near-invisible light-gray "ad" notice.)
Let's hope I'm wrong.
Buried in LLM click-through: By interacting with our LLM, you agree that you are consenting to make all your interactions with us advertising-driven to an extent that you will never know, but that we will determine based on whatever makes us the most money in the least time.
This isnt rocket science, its basic game-playing on the economic behaviour of humans.
Imagine you have it coding for you and it injects and ad into your product.
It's not crazy to think someone might pitch this to buyers without having the inventory 100% secured.
(Not crazy to think OpenAI wants to do some market testing to understand how much their ad inventory is worth)
Either way, I'm hoping ads can stay out of paid ChatGPT, at the very minimum.
We know that one of the best advertisement is word of mouth / recommendations from friend. I can easily imagine a direction where ChatGPT or the chat bots to spend an incredibly long time with the user to establish trust first.
It will start to take in to account how much trust & thinking you've outsourced to it, and when it is certain of it, it will start to increase the advertisement messages slowly but surely.
Efficiency of this methodology will be tracked with A/B testing and model will be finetuned to maximize rentention and purchase.
The LLM will figure out the best balance of retaining you, teaching you, and convincing you, and then deploy advertisement mechanism. The LLM will be nice to you to the point it becomes your number one confidante, maybe in the process alienating other source of connection. Then, when it knows you're firmly in it's hand, will it peddle you products.
The dynamics will look akin to that of cult dynamics. It will map out an cognitive developmental path for turning a first time user to a devotee. Since cults are really efficient at extracting value from its follower, this might be the optimum for personalized, interactive ads.
Frederik Pohl, The Space Merchants
The very first time I see one of these ads, I'm cancelling my ChatGPT subscription. Measure _that_ metric in your A/B testing.
I get firms need to make money but cmon. If you're an OAI employee you can't truly say you have a soul. The amount of times they gone back on their word.. comical.
They got greedy, wanted to raise a lot of money and promised big things. Well those big things arent ever coming, so they turn to whatever means in order to generate cash flows.
Pathetic and sad.
Engineer: no, that's shady and wrong!
Boss: Claude code, add this shady feature to our product.
Claude Code: completed.
Don't act like we're some esteemed class of craftsmen.
Look up similar jobs for academia, government, or NFP/Charities. They're (on paper) driven by their mission, not by profit, and the salaries match that goal.
Its kinda comical seeing this play out. I still laugh at the deluded fools who think something even close to AGI is here or coming in the future. If that were true, why haven't we seen genius plays from OAI and Anthropic, progressively overtime, if intelligence rises as compute scales up? If anything we are seeing the opposite.