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by jdoliner
197 days ago
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It's not totally obvious to me that you can get the economics of this to work. A Google search costs ~.04 cents to serve, whereas a frontier reasoning LLM request costs about 2 cents. The revenue from a Google search is also around 2 cents. So the margins are dangerously thin on an LLM. Now there's lots of variables that can be tweaked on this. So it's possible to get it to work. But there's a lot less room for error. |
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As someone outside of the ad-tech space it blows my mind how much Instagram and Google ads cost these days, and OpenAI would certainly want to price their ad offering as more “premium” (see: $$$).