The cost to scale generative AI
A big question surrounding generative AI is costs, and according to Singhal, they must come down in order to scale with advertising. A company like InMobi serves “billions and trillions” of ads a month, and using generative AI in that structure is unsustainable.
Singhal offered a solution: Ads will subsidize the tokens used to power AI. He said that InMobi is currently testing ad formats where the token costs and ad costs balance each other out.
“It ends up becoming net-positive for the publisher who’s actually running this unit,” Singhal said. “There’s a financial model there that can work.”
