"Some argue that OpenAI has already missed the boat , having waited too long to enter the ad market and thereby giving Google's Gemini time to catch up and establish a large and growing pool of AI search ad revenue. Others, however, think OpenAI moved too soon. Must be nice to have Google's ad revenue to help pay the bills for an ostensibly purer, ad-free research lab."
"Others, however, think OpenAI moved too soon. Must be nice to have Google's ad revenue to help pay the bills for an ostensibly purer, ad-free research lab. "Early is a weird word," OpenAI CFO Sarah Friar retorted later at Davos. "In ad models, you have to be at scale. Sub-scale ad models don't work, so that would be early." As Friar put it, "when you have 800 million weekly active users, you're really far beyond many of the companies who started in that model.""
At Davos, participants focused on whether AI startups can justify sky-high valuations by generating meaningful revenue and monetizing products. Critics say OpenAI delayed entering ad markets, allowing Google's Gemini to capture growing AI search ad revenue. Others argue OpenAI entered advertising prematurely. OpenAI CFO Sarah Friar said sub-scale ad models do not work and emphasized the importance of scale, noting 800 million weekly active users as a significant advantage. Meta announced that Threads will begin showing ads, powered by Meta's personalized AI, offering native feed placements with multiple aspect ratios, carousel units, and Advantage+ catalog ads tailored to user interests.
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