Why pay $20/month for ChatGPT Plus if $8/month plus ads delivers a similar experience?
The ChatGPT Go tier directly cannibalizes the premium offering. As the ad-supported product improves, the value proposition for paying subscribers erodes.
The subscriptionbusiness requires users to believe free isn’t good enough. The advertising business requires free to be good enough to attract massive engagement.
Conflict 2: Enterprise vs. Advertising
CIOs don’t trust vendors who monetize user data.
Enterprise customers chose OpenAI for capability and reliability, not to have their employees’ queries analyzed for advertising purposes. The mere presence of an advertising business signals “consumer company” to B2B buyers.
The enterprisebusiness requires trust in data handling. The advertising business requires data to function.
Conflict 3: Agentic Commerce vs. Advertising
If users let AI handle transactions, they need absolute confidence that recommendations are objective.
Imagine asking ChatGPT to book a flight. It recommends United. Was that because United genuinely offers the best option? Or because United paid for preferential placement?
The commerce business requires users to trust AI recommendations implicitly. The advertising business trains users to distrust AI recommendations.
The Trust Paradox
Advertising requires optimizing for advertisers. Every other business requires optimizing for users. These goals are not aligned — they’re often directly opposed.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
