The consumer market is worthless though. Consumers will never pay, so the only revenue option is ads which barely, if even at all, pay for inference costs.
Ads implemented remotely competently would be worth a lot of money and more than pay for inference. Inference is cheap, especially outside token expensive ordeals like agentic coding.
Maybe. To really make money on ads they would need to embed them directly into the chat I think. Banner ads arent worth enough I think and google is able to make so much off them largely because people are already looking to click a link when they search something. People would just ignore them with genAI.
Maybe Im projecting my distaste for being psychologically manipulated, but I dont think users would continue using a genAI that embeds ads directly into the response when they can just switch to gemini where they only see banners.