ChatGPT Restricts Competitors Ads from Adobe and Others - OpenAI is DEAD

Eli the Computer Guy (0:00)

Coming from the information, OpenAI restricts Adobe and other competitors from advertising in ChatGPT.

So this is an interesting story, because I kind of think it shows quite how effed OpenAI really is. So recently, OpenAI said that they're going to shut down their service from being able to be accessed by Cursor. So OpenAI and Cursor had some kind of contractual agreement. Cursor got purchased by SpaceX for $60 billion. SpaceX is controlled by Elon Musk. And so Sam Allman came out and said, we cannot trust SpaceX to abide by any contracts. So we are going to cut off Cursor from having access to our services, right? And so basically, any development teams out there that have standardized on Cursor and with OpenAI, right now are kind of sort of screwed. And this is one of the things that I've been trying to warn folks for about, for a long time, is there is difference between the technology, how viable, how reliable, how resilient, right? The technology it is, and the reality of the businesses around the technology. As I've said many times before, you will almost never hear me be snarky about VMware. VMware, my god, might truly be one of the best products that was ever created in the world of information technology. It was an amazing product for virtualization. It had a good price point, right? As long as you were appropriate size. It just worked. Everything about VMware was great. Again, you've never really heard me be snarky about VMware. Broadcom then bought VMware, decided to jack the price of VMware through the fucking roof, and now we have a lot of insanity going on. So people are migrating off of VMware, doing very expensive, very painful migrations off of VMware, not because VMware did not keep up with the feature sets of Citrix or whatever else, not because of security issues, not because of anything technical, but because Broadcom is run by a true bunch of bastards, right? And that's one of the real things they have to worry about in the technology world, is sometimes you can have a great technology, but that technology is controlled by a worthless piece of crap. And so one of the things that we're looking at with OpenAI right now is OpenAI has a lot of issues, right? We've talked about this before, the CFO of OpenAI wants to push the IPO in the 2027, the CEO, Sam Altman, wants to pull the IPO in the 2026 We've seen the Chief Revenue Officer of OpenAI leave after eight months, we've seen the head of data centers of OpenAI leave after slightly over a year, we've seen the Vice President of American Sales of OpenAI leave after five months, right? Basically, you know, it looks like OpenAI is a damn disaster. Sam Altman has said anything other than a $1 trillion valuation is simply a no-go, that they simply cannot do anything under a $1 trillion valuation. And so the problem that they're running into is the company is looking ever more questionable by the day as they seem to be running out of money. And so one of the things is when you see OpenAI cut off cursor, that looks like a baller move. It's like, yeah, that's what a baller does. But again, remember, remember a lot of what goes on the technology world, right? There's optics, there's optics versus reality. It's the optics of being in a position of power when the reality is you're probably pretty weak. And that's where we're looking at right now with OpenAI restricting Adobe and competitors from advertising in ChatGPT.

This look, like, look, look, we don't want to take money from competitors. But here's the thing. So the idea is that OpenAI, ChatGPT has products that compete with Adobe and some other things. And here's the thing, if they actually competed, they shouldn't care if Adobe advertised on ChatGPT. If they were actually best in class products, if they actually did what people needed them to do, if they actually had traction, it doesn't matter if Adobe advertises their own products on ChatGPT, OpenAI should be fine. You can see this right now with YouTube. It seems to have calmed down in the past month or so. But TikTok, mother f- There was a while there on YouTube. Every ad I was getting was for TikTok. And here's the thing, Google doesn't give a shit about TikTok, other than what feature said it's going to rip off.

YouTube, Google is more than happy to take all of TikTok's advertising revenue, right? Then take that and then dump it into their own R&D in order to try to compete with TikTok, even if they're considering competing with TikTok. You know what I'm saying? Because YouTube and Google are in a strong position. They are in a money printing position. So they don't really have to worry about their competitors too much. But you look at OpenAI, right? Think about this. If literally they're saying, we are worried that we're going to get reduced traction on our own products because Adobe and other competitors are going to advertise on ChatGPT, how bad does that make their own products look? What god-awful position does it make it seem that OpenAI is in? And the other thing that you have to be concerned about here is, again, with OpenAI, with ChatGPT doing this whole advertising platform, the other thing you have to be thinking about is that they seem to be restricting access to things rather willy nilly. And again, that's another thing to be concerned about. When we think about things like when you're actually doing advertising programs, if you actually come up with a marketing plan, you have a marketing plan. You don't simply do a $10,000 spend on a platform, and that's that. The idea is that you do a $10,000 spend on a platform, you get the metrics in, you analyze how things are working, and then you adjust your marketing on the platform, and then you adjust as you go forward. And one of the things like with marketing is there's this whole idea with marketing that customers have to see your brand five times before they actually recognize it. So it's not simply getting your brand in front of somebody once, and then they'll know who you are. You actually have to get in front of them five times. So one of the big concerns here, if you're thinking about advertising on ChatGPT, you're thinking, again, it's about reinforcing a message into the user's minds about your product. So it's not simply about, I want to get in front of a set of eyeballs once, but I want to get in front of a set of eyeballs five times, and then after I've gotten in front of a person's eyeballs five times, and then want to continuously be in front of their eyeballs every once in a while, just in case they currently need me. Sometimes you may not need a product. Right now, you may not need an image generation product right now. But an image generation product is put in front of your eyeballs five times, and now you know what that brand name is. You know what that product is, but you don't need it. But then you see an ad a week from now, then you see an ad another week from now, and then you see an ad a month from now, then you see, and here's the thing, three months from now, you might be looking for a replacement image generation tool, or an image generation tool, and you're like, oh, yeah, I have seen that product quite a bit. Let me try that product now. And so one of the concerns here for anybody advertising on the ChatGPT, is that if Sam Altman can basically decide at a whim that you're not allowed to advertise on their platform anymore, is it going to be worth while for you to use ChatGPT as a marketing stream? That's the kind of question you just need to think about. And this is where, like I say, something's wrong with OpenAI. OpenAI is dead. OpenAI, it's dead. It's just, you know, I remember, like, I looked at, I remember my puppy Tonto. I remember puppy Tonto. So Tonto, we had two Corgis with two Corritex with Tonto. Anyways, I remember looking at Tonto, and I just remembered Tonto's off. And that was like, he ran around, and he ain't fine. He's doing almost everything fine, but it was weird. It was like he, his head, his head was like, like slightly like this. I just like slightly. I told my wife, I'm like, yeah, there's something going on with Tonto. She's like, yeah, Tonto's fine. She's like, yeah, no, cause he's eating and running around. And I'm like, you just, right? Anyways, took Tonto into the vet. Yeah, I found out he had like bone cancer and a skull.