What If LLMs Change the Enterprise Mannequin of the Web? by @ttunguz


Final week, Reddit filed their S-1 to go public. A minimum of 10% of their income – about $60m – comes from promoting information to coach Massive Language Fashions. Reddit’s information gross sales income will possible be far more than 10% by the tip of the 12 months. Quoting straight :

We anticipate our rising information benefit and mental property to proceed to be a key factor within the coaching of future LLMs.

This raises a basic query : What if the income from information gross sales dwarfs the income from advertisements?

LLMs want information. They compress this it & reconstitute it to reply person queries. At Reddit, like many websites on the Web, the content material adjustments typically. Customers need to search the info for product evaluations, journey suggestions, details, & enjoyable (the most recent memes). Google isn’t the one one after this information : OpenAI & different suppliers are additionally brokering direct offers with Web publishers.

As a result of the info must be contemporary, Google & others will proceed to pay for entry & probably more and more extra for exclusivity, low-latency, or data of a particular kind that improves the accuracy of their models.

Knowledge gross sales invert the enterprise mannequin of the Web.

As an alternative of Reddit constructing product experiences that create good promoting information to earn extra on advertisements, Reddit will launch product experiences that produce extra helpful information to feed to LLMs. The LLM distributors ought to pay extra for higher information.

Consumer information stays the forex of the realm, nevertheless it’s packaged & offered in a really completely different approach. Cookies, the moribund know-how that created the advert world, might be changed by data-purchasing contracts.

At some point, we could go to web sites which have fewer advertisements or none in any respect. The income mannequin of the Web can have modified. Publishers’ promote the info on to the search corporations.

Ought to we evolve this manner, there are any variety of questions round person privateness, information controls, regulation, to not point out how product experiences themselves could change.

The times of the advert community could also be numbered & with it, an period of a brand new enterprise mannequin for the Web.


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