New Technology / Ai Development
Track AI development, model progress, product releases, infrastructure shifts and strategic technology signals across the artificial intelligence sector.
TikTok Closes Deal and OpenAI testing Ads
Topic
TikTok deal and OpenAI ads
Key insights
- The TikTok deal has closed, but it is not as straightforward as reported
- ByteDance has created a joint venture with several investors, including Oracle and Silver Lake
- The joint venture will manage user data security and oversee the algorithm
- ByteDance continues to have significant involvement in TikTok
- Advertisers have been hesitant to pull back from TikTok despite ongoing uncertainties
- Changes in consumer trends may affect TikToks advertising appeal
Perspectives
Discussion on TikTok's ownership and OpenAI's ad strategy.
Martin Pierce
- Claims TikToks ownership structure remains unchanged despite the deal
- Highlights misunderstanding in media regarding TikToks new ownership
- Warns against believing reports that TikTok is under new ownership
- Argues that ByteDance continues to control TikToks operations
- Questions the clarity of revenue and profit sharing in the TikTok deal
Meredith Mazzilli
- Acknowledges uncertainty surrounding TikToks advertising future
- Questions the effectiveness of TikTok as a platform for creators
- Proposes that OpenAIs ad announcement aims to address user concerns
Neutral / Shared
- Notes that advertisers have been cautious about TikTok due to ongoing uncertainties
- Mentions that OpenAIs ad plans are still in development and details are limited
Metrics
ad_revenue_model
charging on the basis of views
OpenAI's ad revenue model
This model shifts the focus from traditional click-based advertising, impacting how advertisers engage.
they are charging on the basis of views as opposed to clicks
Key entities
Timeline highlights
00:00–05:00
ByteDance's joint venture with investors maintains its control over TikTok, leading to continued advertiser hesitance amidst changing consumer trends.
- The TikTok deal has closed, but it is not as straightforward as reported
- ByteDance has created a joint venture with several investors, including Oracle and Silver Lake
- The joint venture will manage user data security and oversee the algorithm
- ByteDance continues to have significant involvement in TikTok
- Advertisers have been hesitant to pull back from TikTok despite ongoing uncertainties
- Changes in consumer trends may affect TikToks advertising appeal
05:00–10:00
OpenAI's announcement of ad placements in ChatGPT aims to generate revenue through views, but skepticism surrounds their execution capabilities.
- OpenAI, LLC is starting to talk to advertisers about early commitments
- Details about the ad plans are still limited
- OpenAI, LLC announced they would start putting ads in ChatGPT
- They are charging advertisers on the basis of views rather than clicks
- There is skepticism about OpenAI, LLCs ability to run the ad business effectively
- The announcement of ads may be seen as vaporware