"How can startups and developers actually monetize their AI products? A startup called Koah, which recently raised $5 million in seed funding, is betting that ads will be a big part of the answer. If you spend any time online, there's a good chance you've seen plenty of ugly, AI-generated ads - but few to none when interacting with AI chatbots themselves."
"To be clear, Koah isn't trying to introduce advertising to ChatGPT. (That's probably something OpenAI will do for itself one day.) Instead, it's focused on the "long tail" of apps that are built on top of the big models, including apps with a user base outside the United States. Baird suggested that when consumer AI products were first becoming popular, it made sense for them to focus on "wealthier, prosumer" users, and to monetize those users by converting some of them into paid subscriptions."
"Baird suggested that by successfully figuring out how to make advertising work in AI chats, Koah could actually unlock more potential for "vibe coded" apps that might otherwise be "too expensive to operate at scale" unless their creators raise VC funding. In fact, Koah is already serving ads in apps like AI assistant Luzia, parenting app Heal, student research tool Liner, and creative platform DeepAI. Its advertisers include UpWork, General Medicine, and Skillshare."
Koah raised $5 million in seed funding to build advertising solutions for AI chat applications. The company targets the long tail of apps built on top of large models, especially those with user bases outside the United States where subscription revenue is unlikely. Koah believes in-chat ads can cover model inference costs for developers serving lower-paying regions, enabling apps that would otherwise be too expensive to operate at scale without VC funding. Koah is already serving sponsored ads in apps such as Luzia, Heal, Liner, and DeepAI, with advertisers including UpWork, General Medicine, and Skillshare.
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