[MontyCarloHall]

>The problem seems to be that no one has figured out what the network effect in LLMs is.

At the very least, the exact same network effects with respect to advertising that search has. The vast majority of frequent ChatGPT users I know mostly use it like a search engine.

That said, those network effects will be massive. Ads in LLMs are going to be unprecedentedly lucrative, irrespective of the platform. Google/Meta currently charge so much for ads because they have such enormous proprietary profiles on users based on their search/communication history that they can offer advertisers the ability to target users with extraordinary granularity. But at the end of the day, the ad itself is static and obviously an ad. LLMs will make these ads dynamic and insidious, subtly injected into chats in the way a real-life conversation might happen to discuss products. LLMs will become the ultimate word-of-mouth advertisers, the final form of astroturfing.