ChatGPT’s $44 Billion Ad Play

The Mostly Growth podcast explores the potential of advertising within ChatGPT, questioning whether it's a sound strategy for OpenAI. Kyle and CJ discuss the immense revenue potential, estimating ChatGPT could generate $44 billion annually with ads, exceeding even Salesforce's revenue. They debate the optimal pricing model, contrasting the current flat CPM rate with the potential for dynamic pricing based on user intent and ad performance. The conversation touches on privacy concerns related to data collection for ad personalization and draws parallels with Amazon's successful, yet unobtrusive, ad implementation. Ultimately, they weigh the risk of user experience degradation against the necessity of monetization for sustaining the expensive LLM infrastructure, concluding that advertising is crucial for ChatGPT's long-term profitability and competitiveness.