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Ad-supported AI chatbots could be nearer than we thought

In a piece about how Meta is planning on adding more conversational voice features into its latest large language model, the Financial Times noted that the social media company is “considering introducing paid advertising or sponsored posts into the search results of its AI assistant.”

Told you advertising was coming to chatbots! As we’ve previously noted, the advent of DeepSeek’s lower-cost, comparable models has caused a number of AI companies to offer up their AI chatbots to consumers for free — something that’s not very sustainable given the huge capital outlays these companies are making to invest in AI.

“Generative AI, it seems, has become a commodity for typical consumers... As far as consumer generative AI, you have a situation where there’s more and more money going out and now potentially less coming in. Something has got to give.

It’s likely we’re about to see the end of truly free gen-AI chatbots. To help recoup costs from consumer models, ad-supported generative AI is likely coming soon.”

Meta, which is launching as a stand-alone Meta AI app, has hinted at advertising in AI before.

As my colleague Jon Keegan wrote regarding Meta CEO Mark Zuckerberg’s comments on the company’s fourth-quarter earnings call: “Anytime you hear the word ‘personalization’ in a Big Tech product, that means it will be used for ads. None of the big AI players have integrated ads into their chatbot products, but if anyone is prepared for this, it’s Meta.”

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Meta buys chip startup Rivos in effort to lower its reliance on Nvidia

Meta is buying AI chip startup Rivos for an unknown sum, as part of the social media companys effort to decrease its reliance on graphics processing units from Nvidia, Bloomberg reports. Rivos was seeking funding in August at a $2 billion valuation. Meta has been spending exorbitant sums in an attempt to create AI models that are smarter than humans, an effort that’s involved investing in developing its own AI chips.

⚡️ +267% ⚡️

A new analysis by Bloomberg looked at wholesale electricity prices and found that in the past five years, areas near data centers saw their prices spike as much as 267%. More than 70% of the price increases took place in areas less than 50 miles from a data center.

As tech companies race to build colossal data centers, unprecedented energy demands from the projects are passing some of the costs on to consumers.

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OpenAI’s first-half 2025 sales were 16% higher than all of 2024

OpenAI brought in $4.3 billion in revenue in the first half of this year, 16% higher than its total revenue in 2024, The Information reports, citing financial disclosures to shareholders. The ChatGPT maker also burned through $2.5 billion in the same time frame.

Currently the company is generating more than $1 billion in revenue each month, which puts it on track to reach its full-year projection for $13 billion in revenue and $8.5 billion in cash burn — a paltry sum compared to the $115 billion it expects to burn through 2029.

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