As A.I. companies burn billions on computing power, ads are becoming the next frontier—and the next flashpoint. Indranil Aditya/NurPhoto via Getty Images

OpenAI’s Jan. 16 announcement that it will introduce ads in some ChatGPT plans surprised even its closest competitors. Google DeepMind CEO Demis Hassabis told Axios in Davos this week that while advertising has funded much of the consumer internet, “there’s a question about how ads fit into the [chatbot] model.” Hassabis added that Google has “no plans” to follow OpenAI’s lead, even as Gemini recently rolled out an in-app shopping feature.

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The moment underscores how urgently large A.I. companies are searching for new ways to make money. Despite their soaring valuations, none of the major players is profitable, largely because of the........

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