[janalsncm]

There are a lot of issues with this article, but I think it is indicative that the author, a partner at a VC firm, thinks the business model is something AI companies like Anthropic and OpenAI will just “figure out” later.

I disagree. They’ve already figured out their business model: taking VC money, giving it to Nvidia, and coming back for more money.

The author mentions users have a revealed preference for ads. This is obviously not true otherwise Adblock wouldn’t exist. Users have a revealed preference for free things. Similarly, companies have a revealed preference for free money.

It’s notable that the successful companies the author mentions (Apple, Amazon, Netflix, Google, Meta) all figured out their business models a long time ago.

[jonesy2]

I read it as the author saying that they will no doubt try it (OpenAI etc) but that it is not at all clear that’ll work, and probably won’t work as well as it does now.

[jonesy2]

On the revealed preference thing - but most people don’t use ad blockers?

[janalsncm]

Most people don’t drive luxury vehicles either. Can we use that data point to conclude that most people have a “revealed preference” for not driving very nice cars?

Of course not. Calling that a “revealed preference” is an abuse of terminology. A revealed preference means both options were equally easy to choose. Ad companies know people don’t like ads which is why they make it difficult to avoid them. In fact if people liked ads then injecting more ads into content should increase user retention.