Sam Altman, CEO of OpenAI, claims that Google’s ad strategy makes money when search fails and promises ChatGPT would handle advertising and commerce differently.
ChatGPT will probably try advertisements “at some point,” according to OpenAI CEO Sam Altman, but he currently has “no idea” how they will appear. Additionally, Altman does not consider advertisements to be OpenAI’s “biggest revenue opportunity.”
Altman has directly criticized Google’s ad business in an interview with Tyler on Conversations:
- “Google’s poor performance is a prerequisite for ads on a Google search. There would be no incentive to purchase an advertisement above it if it provided the best response.
- “You’re saying that it’s not entirely in line with me. You’re paying ChatGPT, or ideally everyone is, and it’s at least attempting to provide you with the best response, even if it doesn’t.
He made a point. When outcomes don’t meet expectations, Google profits. According to Altman, ChatGPT should only generate revenue when it gains users’ confidence.
- “Your relationship with ChatGPT would likely be disastrous if ChatGPT accepted payment to rank a worse hotel above a better hotel.”
Why we are concerned. The entire process from inquiry to suggestion to purchase might occur in a single chat if Altman’s vision for the ChatGPT ad model is realized. In these new search journeys, brands and companies will need to find out how to stay visible.
How Altman might approach ChatGPT advertisements. First, display the best suggestion. Then, OpenAI may receive a little fee that has no influence on outcomes if a user books or purchases with a single click.
- “If ChatGPT suggests the greatest hotel, whatever that may be, and you book it with a single click, it will receive the same cut as any other hotel, and it won’t be affected by anything. That’s probably okay, in my opinion.
- “At some point, we’ll do that for travel.”
What he refuses to do. Pay-to-play responses won’t be available on ChatGPT. According to Altman, confidence crumbles if money taints ranks.
- Like the one we discussed, there is a type of advertisement that I believe would be terrible. I believe there are certain types of advertisements that would be excellent or quite decent. We’ll probably give it a shot eventually. It’s not our largest income prospect, in my opinion.
An example of an OpenAI advertisement. Even Altman is still in the dark. He’s not even putting any effort into it:
- “I’m really adept at avoiding the things I don’t want to do.
- “You know, our product approach is being considered by a global authority. That was what I used to do. She is now far more adept at product planning than I was when I used to spend a lot of time thinking about it. I have other things to consider. She’ll figure things out, I’m sure.
