Jason Lemkin

There's no other way to monetize.

There's simply no other way to monetize.

The cost to serve a free ChatGPT customer is higher than either Facebook or Google.

And the conversion rate to paid, because Facebook and Google, so what are you going to do for business model?

Facebook and Google didn't have a paid tier.

So one argument could have been a certain percentage of the free people will just convert to paid and that will be enough to make the business work.

But the truth is consumer conversion tends to run well under 5, yeah, 10%, probably 5% or less.

You just don't get enough conversions to serve the free tier.

You've got no choice.

Once you recognize you've got no choice in the end, Facebook hated ads, Google hated ads.

You can hate ads till you're blue in the face, but America wants free shit.

And the only way consumers get free stuff is if you want ads.

So there's no choice.

So I think it's kind of a, it's inevitable.

So rip the bandage off, especially if capital is going to get more expensive.

You just got to go do it.

I think the ads will be great.

I think that's a great point, Jason.

I really do.

And there was a period of time, Jason, to your point, when the Google ads were awesome.