# OpenAI's Fidji Simo on why ads are coming to ChatGPT Markdown copy of https://realalpha.app/v/MmBKuPZLZUQ/ on Real Alpha, the best minutes from long interviews with the people building AI. Cite and link the page, not this copy. Fidji Simo argues that ads can help OpenAI make powerful AI more accessible without shaping ChatGPT’s answers. - Show: Sources - Hosts: [Alex Heath](https://realalpha.app/people/alex-heath/) & Ellis Hamburger - Guest: [Fidji Simo](https://realalpha.app/builders/fidji-simo/) is CEO of Applications at OpenAI. - Published: Feb 11, 2026 - Length: 1 h 30 m ## The best minutes - [42:21](https://realalpha.app/v/MmBKuPZLZUQ/?t=2541) [ChatGPT is starting with intent-based ads and firm limits](https://realalpha.app/s/chatgpt-is-starting-with-intent-based-ads-and-firm-limits/) (8 min) - [1:09:57](https://realalpha.app/v/MmBKuPZLZUQ/?t=4197) [AI relationships need guardrails, not a blanket ban](https://realalpha.app/s/ai-relationships-need-guardrails-not-a-blanket-ban/) (6 min) ## Also worth watching - [1:19:51](https://realalpha.app/v/MmBKuPZLZUQ/?t=4791) [OpenAI separates long-term research from product deadlines](https://realalpha.app/s/openai-separates-long-term-research-from-product-deadlines/) (4 min) - [1:24:17](https://realalpha.app/v/MmBKuPZLZUQ/?t=5057) [Codex could let solo builders do work once done by teams](https://realalpha.app/s/codex-could-let-solo-builders-do-work-once-done-by-teams/) (3 min) Skip the roughly 32-minute opener on Super Bowl ads and the Ferrari Luce, plus the sponsor reads and show outro. ## Full analysis: Fidji Simo says ads can widen access for 800 million people - Simo said OpenAI reaches 800 million people, making ads a possible way to fund broader free access. - Her intent-led design and model separation are testable in principle, but costs and independent enforcement remain undisclosed. - Teams should track free-tier capability, ad boundaries, and whether the revenue mix matches her forecast. Its 6 sections, what it means for you and what to watch are on [the page](https://realalpha.app/v/MmBKuPZLZUQ/#analysis), free with an account: - [37:03](https://realalpha.app/v/MmBKuPZLZUQ/?t=2223) Scale explains the incentive, not the subsidy - [43:41](https://realalpha.app/v/MmBKuPZLZUQ/?t=2621) OpenAI starts with intent but leaves later surfaces open - [45:32](https://realalpha.app/v/MmBKuPZLZUQ/?t=2732) The model firewall remains a promise to verify - [48:02](https://realalpha.app/v/MmBKuPZLZUQ/?t=2882) Ads could widen access, but costs remain unpriced - [56:49](https://realalpha.app/v/MmBKuPZLZUQ/?t=3409) Simo expects ads to remain a revenue minority - [52:51](https://realalpha.app/v/MmBKuPZLZUQ/?t=3171) Personal assistance raises the stakes for ad boundaries ## Summary Simo ran the Facebook app during about 10 years at Facebook, then served as Instacart’s CEO for more than four years and took the company public. She joined OpenAI as CEO of Applications, overseeing its applications while Sam Altman leads research and compute. Fidji Simo argues that ads can help OpenAI make advanced AI available to free users alongside subscriptions and business services. She says ChatGPT ads will not shape model answers, will be clearly marked, and will begin with placements related to users’ intent; she expects ads to remain a minority of revenue for many years, probably indefinitely. Simo wants ChatGPT to move from a reactive text chatbot to a proactive, multimodal assistant, with Pulse, video generation and health tools as examples. She supports adults’ ability to form emotional connections with AI but says OpenAI is adding guardrails against isolation and harmful advice; she sees Codex as a way to raise productivity and make small-team creation possible. ### Minute by minute - [32:11](https://realalpha.app/v/MmBKuPZLZUQ/?t=1931) **Ads can widen access to AI.** Fidji Simo says the industry should emphasize AI’s potential to help people create, rather than focus on attacking competitors. She argues that users should be able to pay or see ads, and that ads can help OpenAI offer more intelligence to a large user base. - [39:45](https://realalpha.app/v/MmBKuPZLZUQ/?t=2385) **Simo sets public ad safeguards.** Simo says about 100 employees joined roundtables to develop OpenAI’s ad principles. She says ads will not affect model answers, will be clearly separated from content, and will come with controls to delete personal data used for ads. OpenAI will start with placements tied to users’ intent, and the model will not see ads unless a user asks it to. - [47:23](https://realalpha.app/v/MmBKuPZLZUQ/?t=2843) **Ads can support free intelligence.** Simo argues that ads can help keep stronger AI available to free users as intelligence becomes more costly to provide. She cites image generation, memory, tool use and Pulse; Pulse is currently available to Pro users, and she wants to bring it to Plus users and eventually the free tier. - [1:15:42](https://realalpha.app/v/MmBKuPZLZUQ/?t=4542) **Simo praises Sam’s vision.** Simo says she joined OpenAI after serving on its board and describes working with Sam Altman as rewarding. She says his ambition and public communication help convey the company’s direction, while teams remain focused on long-term product plans. - [1:19:51](https://realalpha.app/v/MmBKuPZLZUQ/?t=4791) **Research and product reinforce each other.** Simo says OpenAI’s research and product teams work closely, and that researchers want their discoveries used in products. She says Code Red affected ChatGPT teams, not long-term research, and that it will end when a new chat model ships. She says OpenAI is focused on products rather than an IPO timetable. - [1:24:17](https://realalpha.app/v/MmBKuPZLZUQ/?t=5057) **Codex could enable one-person companies.** Simo expects Codex to boost company productivity and make it possible for solo founders to build products that once required large teams. She says Codex could also power parts of ChatGPT as it becomes an assistant. Her suggested prompt asks ChatGPT to identify a user’s blind spots. ## Transcript Sources, hosted by Alex Heath and Ellis Hamburger, with Fidji Simo. Transcribed by machine (Whisper) from the episode’s audio, so a word may be off here and there. Where the podcast’s audio and the video part ways, some times are a minute or so off. [0:54](https://realalpha.app/v/MmBKuPZLZUQ/?t=54) Welcome to Access. A reminder really quickly up top, leave a review if you like the show, subscribe. We're a new show, especially if you're checking us out for the first time this week. Also watch us on YouTube, especially this week. It's going to be a pretty visual show. It's going to be a fun one. We are dropping this earlier than normal this week, Ellis, because why? Because I'm feeling like a Bosch this week, Alex. I was so happy to see that our favorite tagline that we found from CES, the more you Bosch, the more you feel like a Bosch, was properly expanded to a cinematic advertisement in the Super Bowl. And that is my current grind set that I am in. Well, that's not actually the reason we're releasing this episode early, is it? We have Fiji SEMO, OpenAI's CEO of Applications, on the show this week. We recorded an in-person interview with her at her lovely home in Los Angeles this previous Friday, and we get into a lot of stuff. What did you think of meeting Fidji for the first time, Ellis? [2:01](https://realalpha.app/v/MmBKuPZLZUQ/?t=121) It was just nice to have somebody in LA that we could drive to, right? I feel like between the two of us, we alternate San Francisco weeks. And yeah, it was just really nice to meet her after all these years and hear, you know, right from the horse's mouth, how OpenAI feels about the new Anthropic ads, share some very first glimpses of their upcoming vision and strategy for how applications are going to work, share a bit of her philosophy on building an ads platform and watching her navigate some nice hardball questions from yours truly about having been part of a slippery slope advertising platform for several years at Snapchat. So yeah, it was a lot of fun. Is that our first like exclusive? Exclusive. Yeah, this is her first long form pod about the strategy and especially about the ad stuff since she went to OpenAI. So some background on Fidji. She's an OG Facebook executive. She ran the Facebook app for a long time. She was at Facebook for about 10 years. She left to be the CEO of Instacart, took Instacart public, was there for over four years, and just last year went to be Sam Altman's number two at OpenAI. [3:14](https://realalpha.app/v/MmBKuPZLZUQ/?t=194) So her title is CEO of Applications. And we get into this in the interview, but essentially what that means is she oversees everything that is a normal company about OpenAI. And Sam still oversees research, so the research team and computing. And tweeting. And tweeting. And we talk about that for sure. He definitely oversees tweeting. I think that was one of our favorite moments. Say, how is it being a CEO when the other CEO is tweeting every day? Do you have push notifications? Does that cramp your style? I think she kind of confirmed she did have push notifications on. She didn't say it. Or at least her people do. Yeah, at least her people do. [3:54](https://realalpha.app/v/MmBKuPZLZUQ/?t=234) But Fidji's great. I've known her for a long time just covering Facebook, but haven't gotten to catch up with her in a while. And it was great that she wanted us to come do this in person with her in Los Angeles on a very busy week for OpenAI. And it's going to be another busy week because today as we're recording this, so we're recording on Monday, this episode's coming out on Tuesday, ChatGPT actually started testing the ads that Fidji talks about with us in this interview. So they started testing the US. They are for people who are over 18. They're not eligible to be near quote sensitive or regulated topics like health or politics. [4:31](https://realalpha.app/v/MmBKuPZLZUQ/?t=271) And interestingly, I thought free and go users of ChatGPT can also opt out of ads in exchange for fewer daily free messages. So very clearly they're doing the ads to pay for all this compute that the hundreds of millions of people who use ChatGPT for free are consuming every day. Another big thing that happened since this interview, I think it was actually like around the time we were recording was that Sam Altman sent a memo to employees telling them that ChatGPT is back, essentially. So there was this narrative, and we talked about this with Fidji, towards the back half of last year, that chat was starting to get hurt really by all the competition, specifically Gemini and what Claude has been doing and how Anthropik's been really pushing ahead with all its product work. [5:14](https://realalpha.app/v/MmBKuPZLZUQ/?t=314) And Sam is saying in this memo that they're back to 10% monthly growth, exceeding that for ChatGPT, which it was sliding before. That was a source of scoop I had, by the way, a few months ago. And that OpenAI is preparing to launch its updated model this week. So the week this show comes out, which Fidji kind of teased with us specifically around the code red. I'm glad we got to ask her, but when will the code red, the infamous code red be over? And she said, hopefully when this new model comes out, I think they're hoping that this puts them firmly back on top. Altman also saying that Codex growth is, quote, insane. So yeah, a lot of OpenAI stuff going on right now. Am I the only one when I hear Code Red, I picture the entire OpenAI team sweating on a submarine? Or if I just seen too many movies, Hunt for Red October, Independence Day, that's certainly what I visualize. I don't know if the San Francisco office looks anything like that. But if not, that is how you motivate people. For sure. What else stood out to you from this interview with Fidji? [6:13](https://realalpha.app/v/MmBKuPZLZUQ/?t=373) I think, as I said, having worked on an ad business before, it is just the easiest button to hit when anything goes awry with the business, with growth, with market conditions. It is such a spigot. You could turn on or off as needed. And she went so far as to say that she never sees ads as being a majority of the business's revenue, I think, which I thought was really interesting. And also, I did not know the extent to which they keep a big wall between the model itself and the ads that are being served. So, yeah, they definitely seem a bit irked by the fact that the Anthropic ads present the ads as something that's going to be incredibly contextual and off the cuff. [6:58](https://realalpha.app/v/MmBKuPZLZUQ/?t=418) I know that was, you know, intended to kind of be funny and a bit of an exaggeration. But at least for now, they do seem pretty separate. As you said, 18 and up, adults only grocery ads going live today in ChatGPT. Yeah, I thought the bit about the model being detached from the ads was interesting. She definitely went into more in depth about how this is actually going to work than I've seen anywhere else. And went so far as to say, she thinks people will ask the model about the ads and say, is this actually a good product? And OpenAI would love if the model potentially negated the advertising because it's so detached from the ads that are being shown next to result. [7:37](https://realalpha.app/v/MmBKuPZLZUQ/?t=457) And I think her exact quote on this was that she thinks that some brands are going to be put off by this, which is interesting for them to have to navigate that. I mean, there's not really been an example of that, I would say, where you can ask the product, hey, actually, is this ad right? And it tell you like that. That's fantastic. She said that during the interview? Did I black out for that part? No, you just didn't have a granola running, my man. I just like during high intensity live interviews or the one time I was on the Steve Harvey show, Google it. You know, you're just so kind of in the zone, in the mode. [8:08](https://realalpha.app/v/MmBKuPZLZUQ/?t=488) I feel like I just kind of am thinking about the next question and reacting and just kind of like not storing any local memories, which is not it's good. good for the next question. Not so good for the recap a few days later, as we're seeing right now. Presence is power. Isn't that what you came up with in the shower? Exactly. Yeah. Thank you. Yeah. Other couple of quick highlights and we'll move on here before we get to the interview. Adult mode. I thought it was interesting for her to talk about how the company's view of this, I think, has evolved where it's not going to be porn and Chachapiti. [8:39](https://realalpha.app/v/MmBKuPZLZUQ/?t=519) I think that was a bit of misinformation at the time when Sam was tweeting about adult mode, but that they've really embraced the idea that consenting adults should be able to form emotional attachments with AI and that they shouldn't get in the way of that. And that's going to be very tricky for them to balance. I think they're putting some guardrails in, but as this rolls out, when chat can actually tell if you're over 18, they're testing it in some markets, they're going to let people do the full kind of character AI replica, you know, emotional stuff, which, you know, people still have with 4.0, the model that they're finally retiring. [9:13](https://realalpha.app/v/MmBKuPZLZUQ/?t=553) in a few weeks. And that's going to also be an interesting moment. So yeah, them leaning into that. And then another thing that I'm not sure if you caught Ellis was how they're going to take this other social network they're working on. She confirmed that they're thinking through another kind of social app, but for agents. So you and I would send our AI agents into a social network to interact on our behalf. I thought that was pretty wild. Don't remember that either. I was living in the moment, baby. Ellis just blacks out when he's doing this. I mean, man, this is why granola is great. You don't have to, you can be present and powerful. Okay, well, let's move on. We wanted to talk about the Super Bowl, which we both, I think, watched. I watched most of it, mostly for the ads. I don't care about football and it seemed like a lame game anyway. But before we talk about the actual ads, just quickly. I had major San Francisco FOMO this weekend. I was there last week, a few days before all the festivities really kicked off for some meetings. And man, it just really seemed like the city was alive. Every tech leader on earth was there. I saw a video of Brett Taylor meeting Nancy Pelosi via Ron Conway introduction outside of a party with Shane Copeland, the CEO of Poly [10:27](https://realalpha.app/v/MmBKuPZLZUQ/?t=627) market awkwardly watching. And I loved the story that the SF standard had with just kind of collecting a bunch of people who don't go to San Francisco, remarking about how beautiful it is and how great it was to be there over Super Bowl weekend. So really good weekend for San Francisco, I felt like. And I will be there to pick up all the trash this Wednesday. That's right. I guess tomorrow I'm going out for a presentation to the new Andreessen Horowitz speedrun cohort. All the young guns that are building new things over there. We'll be talking about the art and science of startup storytelling. [11:01](https://realalpha.app/v/MmBKuPZLZUQ/?t=661) Exclusive access. You're going to have to share that on the show next week. Yes. Proprietary info. Got to check my NDA. But yeah, I'll probably try to share it on the show. Presence is power. But yeah, I mean, there were great videos of Kendall Jenner with Tim Cook and Tyler, the creator at the Super Bowl. I just love this. I love seeing all the hodgepodge of celebrities that come together. Apparently Sundar was in the NFL commissioner box. Ted Sarandos, David Ellison. I'm sure that was kind of interesting. They're in the middle of that merger fight. Wonder how that went watching the game. But yeah, let's also talk about these ads. [11:42](https://realalpha.app/v/MmBKuPZLZUQ/?t=702) Well, first I want to talk about my favorite mobster, Jack Dorsey. Oh, yeah. We got to talk about Jack. Sitting in the booth with, I think it was Jay-Z and Beyonce, like wearing his usual Satoshi shirt, donning his usual beard, like swishing like a very dark red wine in front of him with his fingers. That just seems like uniquely incompatible with the Super Bowl across several different axes. And yeah, he's one of the more interesting ones out there. Impossible to pin down. So yeah, I guess the old title relationship is still going strong. Well, if Jay-Z is ever in public, Jack will be there with him. [12:22](https://realalpha.app/v/MmBKuPZLZUQ/?t=742) So that's the only time you'll see Jack. I love that the announcer, when they were showing that, did not mention who Jack was or that he was there. And also- Jay-Z, Beyonce, and is that Gandalf? Yeah. Okay, cut to the next one. And then there was a great AI edit of his shirt. Instead of Satoshi, it said Epstein. And I almost fell for that. I sent that around because I thought that was real for a second. Okay, these ads. So I was texting you because people were sending me one of the Anthropic ads that aired, which everyone saw in tech the week before, obviously. And the text was different at the end where instead of saying ads are coming to AI but not Claude, it was more vague. [13:00](https://realalpha.app/v/MmBKuPZLZUQ/?t=780) It was like there's a time and a place for ads and your conversations with AI should not be one of them. So everyone was like, oh, my God, they're back. They're back treading from this and they're actually going to do ads. but you popped the bubble for me. You explained all of this. Before I embarrassed myself, did you ping them and ask? No, but I've seen other people saying what you said, basically, that they also ran that version. Well, I don't know. I mean, I think we don't know the answer. I think it is very easy to do a tweet that says Anthropic has heard and either due to legal or embarrassment reasons has walked back their line. [13:29](https://realalpha.app/v/MmBKuPZLZUQ/?t=809) But, I mean, having done advertising for a while, I mean, before the game, I saw the 60 second spot that talked about how ads are coming to AI, but not to Claude. That's the one we've seen. And then during the game, there was a 30 second much truncated version or actually a couple of them. The one of the guy doing pull ups kind of riff on the OpenAI chat GPT one. And the tagline was what you just said. It was more like there's a time and place for ads. So, yeah, I probably got about 25 faves on my tweet debunking. But, of course, the tweets that said that they changed it all have hundreds of millions of views. [14:05](https://realalpha.app/v/MmBKuPZLZUQ/?t=845) So what's the point? That's why I wanted to know if you asked sources.news, ask them. Then we would have something new to share. Thank you for revealing that I didn't actually do the reporting I was supposed to before this podcast started. I mean, that's just a text for you. Why didn't you just text them? Dude, I've been prepping for this show. But you're right, I should have. You could even do a voice note on WhatsApp. I would have taken you eight seconds. Why didn't I just ask Cloud? This episode is brought to you by Accenture. When your advertising operations fall out of sync, everything else follows. [14:38](https://realalpha.app/v/MmBKuPZLZUQ/?t=878) Spotify and Accenture are working together to reinvent the rhythm of ad sales, using automation, analytics, and smarter workflows to simplify campaign delivery and access better data across the business. The result? Less time spent on operations, more time connecting brands with the moments and fandoms that matter most. Learn more at Accenture.com slash Spotify. there was someone who I follow who does marketing and anthropic who posted about this. And I thought you might find this interesting. She said, the brief was ambitious. One, introduce Claude. Two, help people understand what's at stake in your choices. And if we've accomplished even one of those goals, that's meaningful progress. Maybe they got the second one, helping people understand what's at stake. I don't know if this ad actually introduced Claude at all to anyone. [15:54](https://realalpha.app/v/MmBKuPZLZUQ/?t=954) Yeah, I mean, it's a good, clear binary with the values. But I'm just not sure the public believes that tech is capable of actually standing by any of these claims at this point, when so many companies have given in to stuff that they said they would never do over the years. I also just don't think the level of awareness for Claude is very high. And it's certainly a choice to spend your ad talking about what you're not or about someone else. As you heard in the last episode, I thought the ad was really funny and the performances are like super, yeah, super on the nose of exactly what people are feeling with AI these days and why it feels sycophantic, as they say. But yeah, I might have to put the hashtag only time will tell stamp on this one. [16:40](https://realalpha.app/v/MmBKuPZLZUQ/?t=1000) What about OpenAI's ad, the Codex ad? People were catching some good Easter eggs. They were giving a shout out to their secretive robotics unit in the video. So they are training these robotic arms that they want to use to automate their AI data centers is what Sam has been saying, and then eventually do humanoids. And the way they've been training them is to see if the arms can put a duck in a cup. So they showed that in the video. And then people were also reading into the POV of the commercial being seemingly through glasses and suggesting like, oh, does that mean they're working on glasses? [17:15](https://realalpha.app/v/MmBKuPZLZUQ/?t=1035) With Johnny Ive, there was even a freeze frame that the official ChachiBT account posted with blurry glassy looking things being held in front of the humanoid robotic arms. So yeah, what did you make of this Codex ad? Yeah, I thought it was a fairly classic kind of tried and true formula for an ad, which is showing a whole diversity of people building things from scratch and then talking about how we're going to help you do it. And so, yeah, very much, I would say, unsurprising, but direct Super Bowl ad. I mean, I saw someone tweeting about how, So what was it? They were saying they were asking a bunch of family and friends who aren't in tech what they thought of the different Anthropic and OpenAI ads. [17:57](https://realalpha.app/v/MmBKuPZLZUQ/?t=1077) And they're like, yeah, the OpenAI ad was kind of inspiring. Like, yeah, go get them. Seize the day. All right. That's the goal. And they're like, and the Claude one, I didn't really even know what it was talking about. So it is tough. I mean, with an audience of 150 million people, we've talked about this on the show before. Or how could you ever know all of them or how to talk to all of them or what the normies really feel about anything without doing the research that we don't usually see. So much of our messaging that these companies are usually doing is just for each other, billboards in the valley. [18:30](https://realalpha.app/v/MmBKuPZLZUQ/?t=1110) And that is a very different muscle. And if there is something that I've learned in advertising over the years, it's that simple, direct, inspiring, like the OpenAI ad is how you do move the needle with perception. and you just repeat that shit over and over again. Whereas trying to make a sophisticated or nuanced take is not always a good bet. The Facebook chair ad was not a good bet. Oh my God. I would like to know how many people remember that beautiful gem of a moment. For those who don't know, was that a Super Bowl ad or was that just- I think it was. I mean, it certainly felt like one. People called it Facebook as a chair, because that is what the ad felt like it was. [19:12](https://realalpha.app/v/MmBKuPZLZUQ/?t=1152) And it was showing all these kind of like random scenes of these gathering places or simple utilities in daily life, one of which being a chair. And it talks about Facebook being the chair. And I think the kind of intellectual 4D chess here is talking about yourself as a fundamental utility in the future of the world. It's so simple and people don't even think about it. But yeah, at the end of the day, all people think is, wait, it's a chair? Quickly though, there was also some weird OpenAI fake ads. You saw a fake Alexander Skarzard ad where it was supposedly the device with Johnny Ive, the orb, and some fancy looking earphones. It looked very well produced. And then there was a Reddit post that was claiming to be a former OpenAI employee saying how frustrated they were that this ad never got out and they're leaking it. [20:02](https://realalpha.app/v/MmBKuPZLZUQ/?t=1202) And then OpenAI said it was fake news. There was also a fake headline about OpenAI changing its Super Bowl ad at the last minute to respond to Anthropic right before the Super Bowl. So a ton of just FUD and fake news swirling around OpenAI right now. I mean, I am a gullible person. Anyone I know can tell you that. But I thought it checked all the boxes for what I would have expected them to do. And that's why I thought it was real. I mean, it's funny. I think what made me think it was fake was the Reddit post, the disgruntled employee. But look what it does. It has a current understated superstar, probably a bit overdone, which I think tech executives usually fall for. [20:45](https://realalpha.app/v/MmBKuPZLZUQ/?t=1245) They want to do someone who's currently cool, even if they're in everything. It had a square aspect ratio, almost like a Yorgos Lanthimos ad, which he also did another ad for Squarespace. It was very mysterious and interesting and almost like 2001 monolith of Alexander Skarsgård tapping this little stainless steel orb. What's it going to be? It's a mystery. We don't know what it is yet. And I also thought that given the leaks, this fit the bill of what we had heard Johnny and Sam were developing. I mean, at Apple, we did. Everything's kind of a bit translucent white. I think it makes sense that if they want to do something universal and not appley, that it is stainless steel. [21:21](https://realalpha.app/v/MmBKuPZLZUQ/?t=1281) Doesn't matter how many fingerprints it picks up. That's just what Johnny wants to do. It also had the open ear design that I felt like we had seen. And I think it all felt very much like I would not have been surprised if this was the tease for the new product until it said dime at the end. And what was the line that came right after that? I forget. But yeah, dime is a horrible name. Yeah, I mean, even if it was fake, I was nonetheless very impressed for this faux highbrow tech ad that is pretty much exactly what I would have expected had it been real. Unfortunately not. So your favorite commercial, though, is Google's, right? [21:57](https://realalpha.app/v/MmBKuPZLZUQ/?t=1317) You love the Gemini ad. Oh, yes. Thank you for reminding me. Google wins again just by doing the classic heartfelt story thing. Pulled on your dad heartstrings, didn't it? Obviously. I mean, the tech set is so often trying to come up with productivity use cases, which makes sense. We all love to make things that make us faster and make our brains bigger. But what they did was they told a generative AI story of a kid who is apprehensive about moving into his new house. And his parents use Gemini to create visions of the future house with all his stuff in it. His room ordered just how he wants, but in his new room. [22:34](https://realalpha.app/v/MmBKuPZLZUQ/?t=1354) the garden with all the things that they haven't planted yet, imagining what they could look like. And they've been doing this for 20 years now, going back to the Parisian love one, and others have tried to copy it since. And it's just tried, true, heartstrings, doesn't matter that that's not everybody's use case. It's just a good Super Bowl ad. I liked it. I liked that it showed the products too. I mean, going back to Anthropic and even OpenAI, which I guess did show codex on the screen a little bit, but the product was super integrated into the ad. So you knew exactly what you were seeing, which I liked. And also Google really has tuned the way it's messaging these things because it's been doing a lot of Gemini helping people with their family ads. A new kind of help from Google. And it's had to like pull ads because some of them have been so cringe. I remember one where the dad was trying to use Gemini to like write his kid a birthday card or something like that. And the messaging was very off because it was like AI is replacing his intentionality with his daughter. Whereas this is like AI is part of the intentionality. It's part of the relationship, which I appreciated that tuning. It seems like Google has had to take a few swings to get this right, but they finally [23:43](https://realalpha.app/v/MmBKuPZLZUQ/?t=1423) are. Yeah, it's interesting too. I think the folks at Apple, they don't really do on-screen product storytelling with software in this way. But the tries that they had with AI, I mean, gosh, they're a year and a half old at this point. The ones with Bella Ramsey or otherwise of like the mother who forgets a gift. And so she makes an AI memory movie and presents it as a lot of hard work and authentic. That's useful, but not really cool or emotional. Whereas Google just kind of nails it again. I don't know if they're working with the same agency or what after all these years. I know some of the folks who've kind of been involved in that type of work here or there. [24:20](https://realalpha.app/v/MmBKuPZLZUQ/?t=1460) But it's really, it's a template at this point. And all you have to do is just come up with the heartfelt story and let it be. Ellis, quickly before we get to this interview with Fidji, I had a really cool experience that I've been dying to talk with you about. Is that so? Yes. So last week, I teased this on the last episode, I was in San Francisco doing a highly secretive briefing with Johnny Ive and the new electric Ferrari. So I spent the day with Johnny, Mark Newsome, his co-founder at Love From, a bunch of other Love From people, pretty much the entire Ferrari leadership team. And they showed us the interior of the all new electric Ferrari Luce, as it's called. [24:59](https://realalpha.app/v/MmBKuPZLZUQ/?t=1499) And I do not normally do car junkets. This is actually my first one. I don't cover cars. but you know the johnny of this all made it very intriguing to me and i've gotten to see johnny a little bit since he left apple but this was by far the most time i've i've spent with him and i'm going to be teasing out kind of all this in the interview and in sources it'll be out by the time this episode drops but yeah man it was a very cool experience have you gotten to see the video of the interior yet i did i did it's a whole new design language for them i think the Biggest question for me was for all the hullabaloo about bringing back buttons, they're still kind of presented as part of the screen, which I think on the one hand makes sense. [25:40](https://realalpha.app/v/MmBKuPZLZUQ/?t=1540) You know, you kind of have this big dashboard. Part of it is a screen. Part of it is buttons. I like that they still kept, you know, things like the speedometer. But it distinctly feels a bit less muscly, I think, for a reason. I mean, that's one of the fun things with cars, I think, is all the dials and knobs and this and that. And when you look at it on that screen, and the performance mode looks like a widget on your Mac, I feel like I wonder if that could have been better as as another dial or a knob or something that you could rev, you know, I'm saying in a circular motion, I mean, not as big as the things Mini Cooper has done over the years. [26:15](https://realalpha.app/v/MmBKuPZLZUQ/?t=1575) But yeah, I was interested in kind of the way that they tried to bridge the gap between all screen and all buttons. Yeah, it's interesting that you feel like it's still not analog enough because it's definitely a way more analog car than any luxury electric vehicle on the market or most new luxury, even gas vehicles on the market. Uh, so the entire interior is aluminum and glass. And, uh, Johnny was saying it's the most, uh, detailed CNC work that he's ever seen or that anyone he's ever worked with has ever done. So that's obviously saying he thinks this is better CNC work than an Apple device. [26:52](https://realalpha.app/v/MmBKuPZLZUQ/?t=1612) Uh, and it should be for what it's going to cost. I'm sure this thing's going to cost like half a million dollars. They haven't revealed the price yet. They were just showing us the interior. I actually didn't even get to see the exterior of the car yet. They deconstructed this like an Apple event where you go in and there's a bunch of parts laid out on Apple-like tables in the different colors. You've got everything like floating in the middle of the room, deconstructed, and where you can walk around it and look at it. And, man, it's beautiful. It is definitely a different direction. And I hear you that maybe there are areas where it could be even more analog. [27:25](https://realalpha.app/v/MmBKuPZLZUQ/?t=1645) But I was frankly just blown away with how tactile everything was. I mean, you can really tell the level of thought that they put into every button click, every knob, every switch. And yeah, definitely a new kind of car. Yeah, I think a lot of it, to be clear, I know I have to be a critic on a podcast. A lot of it looks absolutely stunning. I mean, the launch button, the big Ferrari button you can press like in the center console. I love the instrument cluster behind the steering wheel. There's like a fucking aeronautical style G-forces thing, like just absolutely badass. But you know what this reminds me of, which is in Love From DNA, one of their designers who I believe is still there, Mike Mattis, is he still there? [28:10](https://realalpha.app/v/MmBKuPZLZUQ/?t=1690) Did you get to talk to him? Oh yeah, he worked on this. Okay, see, it reminded me of Nest, the circular interfaces and some of the stuff here. And I'm like, this looks like Mike's DNA. Yeah. So glad you brought that up. There was a moment where we were talking with Johnny and Mark Newsome about the temperature control because there's no auto setting for the temperature control. And apparently that was a big debate they had of you just set the temperature and there's no auto button. Johnny was talking about the way that the temperature information moves. And he was like, yeah, we had Mike work on this. [28:39](https://realalpha.app/v/MmBKuPZLZUQ/?t=1719) So it's, you know, that's like only a thing that something like Love From could do is you have like the original designer of Nest work on the Ferrari's temperature control. I'm a huge fan of Mike and everything he's done. For those who don't know, he did a lot of the original iPhone applications. He did Nest. He's done some other startups in between. He also did Facebook Paper, one of my favorite apps ever. And, yeah, I felt like with these, I mean, Nest is just so goaded for so many reasons in terms of what it didn't do. And the mixture of, you know, screens and turnable rings that still retains the thermostats familiar, you know, muscle memory to it. [29:19](https://realalpha.app/v/MmBKuPZLZUQ/?t=1759) Yeah. So this was super interesting to see that kind of hybrid between the Ferrari design language and theirs. Yeah. I mean, the key is made of ink that changes color and lights up when you put it in the vehicle. the dials you were talking about the instrument cluster. So they're physical dials, but they're digital screens. So it's like a four panel series of digital screens with physical instruments integrated throughout. They kept the parallax effect. So when you look to the side, you see the parallax. Oh man. You know, the Apple car for me kind of hung over this whole briefing because he obviously worked on the car when he was at Apple. It was a project that was going on for like a decade. Apple's never confirmed its existence. They reportedly killed it at one point a few years ago. And so I think me and a few of the other tech, more tech-minded reporters who were there were kind of looking for strains of, is this the spiritual successor to what would have been the Apple car? And Johnny basically said no, but it's still hard to not see that Apple eye and that Apple taste in the products, in the interior. [30:20](https://realalpha.app/v/MmBKuPZLZUQ/?t=1820) I mean, we're never going to know about what the car might look like, but I think between CarPlay and this, we probably have a damn good sense of what the actual driver controls may have looked like. Obviously, the prioritization is going to be a little bit different for Ferrari versus what would have been Apple. But I mean, if you look at the little switches that they have on the control panel, you know, for the temperature and this and that, there is a tactile piece. But then right above it, there is a little screen seemingly behind that panel that is dynamic and shows you. So you do get like a nice kind of combination of the tactile and the power of screens to be dynamic. [30:53](https://realalpha.app/v/MmBKuPZLZUQ/?t=1853) I do think, you know, you would have seen probably something similar. I mean, you see with Johnny's quotes about this, like they wouldn't have made the whole thing a touchscreen because of exactly what Johnny said. And he's right, is that when you're using a touchscreen, you're taking your eyes off the road. And I mean, obviously, you know, we could argue about, well, in the future, you're not going to have to look at the road. Yeah. But anyway, very cool experience with Johnny Ive. And with that, I guess let's finally kick it to our interview with OpenAI's CEO of Applications, Fiji SEMO. This episode is brought to you by Accenture. [31:31](https://realalpha.app/v/MmBKuPZLZUQ/?t=1891) When your advertising operations fall out of sync, everything else follows. Spotify and Accenture are working together to reinvent the rhythm of ad sales, using automation, analytics, and smarter workflows to simplify campaign delivery and access better data across the business. The result? Less time spent on operations, more time connecting brands with the moments and fandoms that matter most. Learn more at Accenture.com slash Spotify. This episode is brought to you by Google Chrome. You think you know a browser, but Gemini and Chrome? That's new. It can help you with practically anything on the web, like restoring a vintage motorcycle from a 50-page restoration block, or finally break down that long article you've had open for weeks. [32:12](https://realalpha.app/v/MmBKuPZLZUQ/?t=1932) Gemini and Chrome is here for it. Ready to make anything online make sense? There's no place like Chrome. Check responses set up required, compatibility and availability varies 18+. Fidji, thank you so much for having us here at your lovely home. Thank you so much for having me on the podcast. It's good to be here. There's so much to talk about. This week, I feel like in particular, we're talking Friday right before the Super Bowl. There was a lot. I was on like three press calls with the Okinawa team this week. You guys are shipping a lot. I want to start with the ads, though. So Anthropic released its Super Bowl ads and Sam has responded. [32:50](https://realalpha.app/v/MmBKuPZLZUQ/?t=1970) You've seen them, right? Yes, I have. You've seen them. We've all seen them. Sam has responded. Kate has responded, your CMO. But I'd love to know what you thought when you saw those ads. Yeah. Well, look, the ads are funny. So there's that. At the same time, you know, the thing that I felt most acutely is like, we're at this very interesting moment in time where we can really remind everyone that they're a creator and with AI you can build anything. Like that's really the story of the entire industry. And that's the story of our Super Bowl ad. And I find it that, you know, everyone in the industry could make the pie bigger for everyone if we can make everyone realize that AI is here to give you these superpowers. [33:37](https://realalpha.app/v/MmBKuPZLZUQ/?t=2017) And I think that's such a much more powerful message than just hitting at a competitor, you know, but they do them and we're going to do us. It gets people talking. It gets people talking for sure. As a wannabe marketing theorist, I feel like the thing that actually is going to stick out more to people in the Super Bowl, I think they're going to forget about the ads message completely because most people haven't even experienced it yet inside of any of these services. That was the zinger that Sam had was there were more Chachapeteers in Texas than Claude has globally. But I think what people are going to remember, which is interesting culturally, is just the impeccable actor performances that portrayed this very like, you know, we say sycophantic, confident, happy, robotic. [34:23](https://realalpha.app/v/MmBKuPZLZUQ/?t=2063) Obviously, you guys know better than anybody else that that stuff is going to be fine tuned out and worked through over time and people can choose the tone of voice. But that is what I think is going to make people perk their ears up and laugh. And yeah, if anything, I think that might actually overshadow the ads message outside of tech. And, you know, on the ads message itself, like, I think that's going to be a very interesting debate, right? On like, is AI truly for everyone or only for the people who can pay for it? And I think I want to live in a world where we give people the choice. Like, you have the choice to pay if you can. [34:57](https://realalpha.app/v/MmBKuPZLZUQ/?t=2097) you have the choice to, you know, see ads if you don't want to pay. But it's really important that we find a business model that allows us to distribute the best levels of intelligence to everyone. And I think if we don't introduce ads and, you know, we end up like, you know, portraying ads as like this evil thing, we're going to end up in a much, much worse place in terms of AI diffusion and like the promise of AI, which is empowering everyone. So, you know, I think it's a bit of a missed opportunity to actually set the industry in the place that it needs to be set. And as for the tone, yes, I think it's a moment in time. [35:35](https://realalpha.app/v/MmBKuPZLZUQ/?t=2135) It's funny. And I think we're continuing to iterate on the chat GPT personality so that everyone finds the personality they want. But that's also the thing, right? Like everyone wants something different. When I talk to our users, there are some users who love the like super cheerful, like, you know, personalities that pump them up. And then you have some users who are like, no, no, no, I want the one liner. And like the art is going to be like giving everyone the tools to personalize for what they want. As a OG Facebooker, I think you'll appreciate this. This week has got me thinking a lot about the Facebook versus Apple ATT tracking era where there were the barbs were flying in kind of a similar way between two companies. [36:17](https://realalpha.app/v/MmBKuPZLZUQ/?t=2177) And they were attacking each other's business models with kind of similar arguments. And it's interesting to see now that that's kind of come to AI. And I wonder, as someone who's been in tech for as long as you have, when you see that happening again, what does that say about where AI is right now? I mean, I think that's exactly what you imagine, which is we're at the point where diffusion and scale is the most important thing. And it turns out we have concluded as an industry over and over again, ads is a pretty good business model to keep products free. And it has created an immense amount of value in tech, right? [36:55](https://realalpha.app/v/MmBKuPZLZUQ/?t=2215) and for all users. And so, you know, we're at the point where maybe other companies that have very small user bases don't need to think about that. But for us, when you reach, you know, 800 million people and you're like, I want to give as much intelligence as possible to everyone. Of course, ads is, you know, a consideration. Now, the thing I think is really important is to realize that ads has also evolved, right? Like we are not going to do ads the way other companies in the past have done ads because we have a fundamentally different medium. So we came out when we announced ads with super strong principles like ads are not going to influence the response that Chagipity gives you because we think full independence from ads and trust that like the trust that people have in these responses is absolutely critical. [37:42](https://realalpha.app/v/MmBKuPZLZUQ/?t=2262) So we're not going to like copy paste models of the past. We're not going to, you know, obviously we produce all of the bad that some ads platform have done. We want to create a very different kind of ad platform that is very appropriate for this moment, this product, and AI is different. I think covering ads and even working within an ads business at Snapchat for such a long time, I feel like there's often a tendency for founders, even the ones I work with today, to make big, lofty, noble promises. And then when times get a little tougher, it's very easy to turn that dial on the ad load or this or that. [38:18](https://realalpha.app/v/MmBKuPZLZUQ/?t=2298) How do you hope to protect against that internally? Yeah. as you guys navigate different market conditions, competitors, etc. Because is that not the easiest button to press when things get tough as a business? So, you know, the thing that's interesting about us compared to fully ad-supported companies is that we have many different business models, right? We have a consumer subscription business model. We have ads. We have B2B companies buying our services. You'll have devices with Johnny in the future. Exactly, exactly. And so that means we have many different revenue streams, And that allows us not to have to max out any single one of them. [38:56](https://realalpha.app/v/MmBKuPZLZUQ/?t=2336) So I think that's really helpful. The second thing, and that's going to sound cliche, is just like we have a very, very strong culture that was built from the very early days of the research lab to really do things that are for the good of the world and align with the mission. So even when I arrived and we started thinking about doing ads, I didn't just go and started coding. I actually did roundtables with tons of people at the company. I think we had 100 people show up in different roundtables because people were passionate about figuring out how we were going to do ads in a way that doesn't fall into those pitfalls. [39:32](https://realalpha.app/v/MmBKuPZLZUQ/?t=2372) And that's how we came up with the principles. We actually built them with researchers, with people at the table who cared enormously. And so I think we have a culture that has the antibodies against that and will absolutely revolt if, like, you know, we go too far in that direction. And fundamentally, like, we're doing it to make a better product so that, like, we can put that product in the hands of everyone. If we go too far towards that, that's just not going to happen. Yeah, I think those principles are imperative because one thing I witnessed at SNAP is that when people leave who may have been those antibodies or protectors, what can someone new point to? [40:11](https://realalpha.app/v/MmBKuPZLZUQ/?t=2411) Someone who is new, a new PM arrives, and as PMs do, they're like, I want to make something go up and look good. And if there isn't something to point to, then they're going to do their job. And so what are some of those principles? Are those public? Yeah. And that was actually very intentional. It was like we made them public so that we have external accountability. Absolutely. And so a couple of them are like, you know, ads are not going to influence the results of like the LLM. That's, I would say, the most important one. Another one is that ads are always going to be very clearly separate and delineated from the content. So you know exactly what you're getting. We have another one that is all about data control. [40:56](https://realalpha.app/v/MmBKuPZLZUQ/?t=2456) So like we do not sell your data to advertisers, obviously, but we also give you a ton of control, including the ability to completely delete all of your personal data that's being used for ads. So all of those controls are like very clear, very prominent, and we've committed to them forever. So funny. I think Google would say that their ads are clearly delineated as well. But they just keep getting closer and closer to the results of the Blue Links page to the point where you may not even know that something's an ad anymore. I mean, that's a business that's, what, 20-something years old? Oh, my God. [41:28](https://realalpha.app/v/MmBKuPZLZUQ/?t=2488) On Amazon, I feel like the ad or sponsored looks exactly the same as Amazon's choice. And so it's kind of deliberately ambiguous, I think. We made it pretty clear in our principles. And you'll see the experience, right? Like, I think the experience is very, very clear. I also think that... Well, we won't see because we pay. But yes, to your point. And we will also hold you accountable in our next interview in five years. as the little ad bug just gets smaller and smaller. I am fine signing up for that. But, you know, the other thing is like ads is sometimes seen as like this necessary evil. And when I look at my own usage of like, let's say Instagram, like I buy so much stuff from those ads. [42:15](https://realalpha.app/v/MmBKuPZLZUQ/?t=2535) It has allowed me to discover a ton of good products and it has a massive positive impact for SMBs who would not get discovered otherwise. So I actually think that if we do it well, tastefully, in a way that preserves trust, in a way that preserves privacy, I think we can have a very positive impact with this product. And that's the added benefit of putting that in the hands of tons of people for free. Maybe a bit of a more technical question, but I think it speaks to how people will feel about the product. You've kind of got two directions ahead of you. You could go the Facebook, which you helped build, the Facebook ads route, or you could go the Google ads route. [42:50](https://realalpha.app/v/MmBKuPZLZUQ/?t=2570) and to most people they probably don't understand the difference but for Facebook it's you know I tell Facebook I want to reach moms in Ohio who like Target speaking from experience yes that's our podcast that's your side hustle and and Facebook just goes and does it and they use the social graph and all that you know this you help build this there's also the Google approach which is keyword based auction based and is not tied to identity in the same way and is not like we go figure it out for you. Which direction are you guys going to go? Because I mean, your ex-Facebook, Vijay, who's helping you build the ads team is ex-Facebook. I mean, there's a lot of ex-Facebook people at OpenAI. So are you going to go the more Google route or the more Facebook route, do you think? Well, first off, we have a lot of ads experience, but we all came here to build a very different ads model than what we built in the past that's appropriate for the product we have in front of us. And I think if you look at ChatGPT, the Google model is a lot more relevant. [43:46](https://realalpha.app/v/MmBKuPZLZUQ/?t=2626) like you're talking about something you're you're clearly having some kind of intent and like chat gpt is helping you and so you can imagine ads like being related to that content performing a lot better and being a lot more relevant for the user so well definitely starting there you can imagine over time that there might be surfaces that are more like less intent driven and more open to you know yeah exactly polls where it might be you know closer to the facebook model uh but we're very much starting with like max level of relevance for the content that you're talking about. This has just become such a conversation in tech. I mean, I was just at Davos and it was like, everyone was talking about ads and AI. And I was even catching up with Boz, one of your former colleagues about it. And he was saying that, that basically the Google model makes the most sense in a chatbot context, but also that, you know, people are rightfully going to be still worried that the ad is somehow tied to the LLM's output, no matter what you do to design it. [44:46](https://realalpha.app/v/MmBKuPZLZUQ/?t=2686) And Demis from Google was kind of saying a similar thing. And I'm curious, like, do you think you can, even if you're saying in the background, this is how it works, do you think people will still, there's going to be a challenge with people still thinking, no, this is actually like influenced by what I'm telling ChatGPT. I think that's definitely a risk. I mean, you know, Facebook is a good example. Facebook didn't sell your data to advertise, but tons of people think they did. She doesn't listen to your microphone and tons of people think they do. And so is there a perception risk? For sure, we're doing everything we can in the products through education to educate people. [45:21](https://realalpha.app/v/MmBKuPZLZUQ/?t=2721) The thing that I think is also helpful is because we have a conversational product, I think people will actually talk to the model and realize what's going on. So I'll give you an example. [45:32](https://realalpha.app/v/MmBKuPZLZUQ/?t=2732) **Fidji Simo:** Because the model is not aware of the ads, if you ask the model, like, hey, I just see some ads on my screen. [45:40](https://realalpha.app/v/MmBKuPZLZUQ/?t=2740) Can you tell me more about them? The model is going to tell you, I actually don't see the ads because we're not surfacing that. But if you want me to see them, click this button. And that reinforces to people like, oh, by default, the model is not seeing that. So that's a good example. And then on top of that, once it says, OK, you can actually look at the ads and tell me what you think, the model is going to respond something that is completely neutral. So that means that in some cases, the model is going to say, well, I see the ads for these two companies. That one is good, but that one is actually not really good. [46:14](https://realalpha.app/v/MmBKuPZLZUQ/?t=2774) And I think that's going to reinforce neutrality. Now, I think that some brands are going to get spooked by this. That's going to piss some brands off, yeah. But I also think that we live in a world where transparency and authenticity is what counts. And so if a brand has a bad reputation so that chat GPT ends up saying something bad, like they should fix that instead of blaming us. So I actually think the discussion with the model will reinforce the neutrality in a way that nothing else could. I think the placement of the ads inside of a product that is so personal. I definitely am a believer that ads can be helpful and show you more of what you might be interested in. [46:53](https://realalpha.app/v/MmBKuPZLZUQ/?t=2813) After all, products do solve problems in your life. I think I'm going to argue that the reason people are so apprehensive and concerned about this is almost just on principle. Like, why does arguably the best product in human history? Are you saying that's ChessieBT? Maybe consumer AI. I'll take it. Consumer AI. All right. One of the best products in human history. Why does that need ads, you know? And I think there is a difference with Facebook with the cost of providing the service. you know the cost of burning all those tokens as opposed to running a photo news feed or a text news feed or something like that but would you have fewer users long term if you didn't have ads given that the argument is about accessibility i feel like the same number of people would use it just because of how good and how important it is well this brought me back to the apple thing like uh turns out more people use facebook than when the whole apple war over att started right so it's like people do actually use free services with ads. [47:52](https://realalpha.app/v/MmBKuPZLZUQ/?t=2872) Yeah, like, you know, ads have a bad rep, but ultimately people like end up, you know, enjoying services with ads. And the thing I would say is like, you're saying that in the current world, but think about how fast intelligence is progressing. It's going to become more and more like important to have the highest levels of intelligence in the free tier. And I think if you don't offer ads, what's going to end up happening is you're going to have a divergence where the people on paid tiers are going to get tons of great intelligence, are going to be, you know, empowered with these superpowers. And then people in the free tier are going to have, you know, like okay experience, but with a pretty big gap. [48:32](https://realalpha.app/v/MmBKuPZLZUQ/?t=2912) And so that's a gap we don't want to create. We want having a stripped down version of the library or the internet or. Yeah. And, or just like, you know, older models, lower intelligence, lower tool use, like all of these things. And so, you know, to me, it's like, yeah, maybe we still have a lot of users, but I want those users to have as much intelligence as possible so they can do things in their life. And I think having ads to support that will be neutral to an enhancement if we do our job well. I just kind of wish that all of you, Anthropic included, would just actually say the business reasons for this too more. [49:08](https://realalpha.app/v/MmBKuPZLZUQ/?t=2948) I get the democratization access thing a lot, but I mean, you guys got to make money. Most of your users, they cost you money. right because they're on the free tier so we spend a fortune yeah so this was inevitable that this was going to happen and by the way anthropics thing i noticed they say we may do ads in the future and the thing where they're kind of yeah i mean as elise was saying you know people leave themselves some openness and the funny thing the funny thing in this is like we went out and announcing ads with very strong principles they went out criticizing ads but leaving the door very open for them to do it and saying they're going to do commerce and shopping in that same blog post. But like, isn't there an argument to just saying like, look, we have to pay for this. [49:49](https://realalpha.app/v/MmBKuPZLZUQ/?t=2989) And like, this is the way we're going to pay for this is we're going to do ads. And you're not going to have billions of people paying for ChatGPT. Just no consumer, you know this well, Facebook, like no consumer product reaches that scale without ads. And so just kind of embracing that and saying like, that's what it is. And like, yeah, Sam called it a last resort a couple years ago. But like, you all are a huge company, and you're going to probably IPO and you need to make money. And like, that's kind of the thing, right? Yeah, but I think it's not like making money for the sake of making money. I think it's making money so that we can continue serving billions of users with that level of intelligence. We could also make money by just not serving that much intelligence in the free tier. And like, I'd rather, you know, I'd rather make money this way and expanding access than making money by just, you know, saving on intelligence in the free tier. [50:36](https://realalpha.app/v/MmBKuPZLZUQ/?t=3036) I want to go back one step. Which free users are costing you the most money? What are they doing? Well, you know, I mean, we see all use cases, right? Like image gen and like creating tons of images. That's expensive. We see people like, you know, using lots of tools, personalization, like, you know, how much you use memory and how much you have stored in your memory. Like all of these things matter to, you know, how much it costs us. And again, all of these things are great additions to the product. Like if you use ChatGPT with and without memory, you see a massive difference, right? So these are things that we want to expend access to. [51:16](https://realalpha.app/v/MmBKuPZLZUQ/?t=3076) Even Pulse, you know, Pulse costs a fortune to deliver. It's like we do work in the background without you asking us anything to deliver something hyper personalized to you every morning. That costs a lot of money. Right now it's available to Pro. we want to make it available to Plus. And at some point, we want to make it available to free as well. Like, these are the kinds of services that are costly, but we want to bring to everyone. Pulse is so interesting to me, because having covered Facebook for so many years, that whole idea of the personal newspaper that Mark was talking about for all those years, it feels like it's finally coming to life with Pulse. [51:51](https://realalpha.app/v/MmBKuPZLZUQ/?t=3111) Yeah. And the thing I love about it is that, you know, when I was at Facebook, and we're trying to give you the personalized newspaper, like we were limited by the content that was created in the world, right? With Pulse, we create the content and that's what's super magical. Like the other day, it served me something about the intersection of fashion and fantasy reading, which like there's no article that's gonna, like it's too niche, but it figured out she has these two interests. We're gonna create an entire article about fashion ritual in fantasy books. And I was like, oh my God, I'm the only person in the world that cares and this is amazing. [52:29](https://realalpha.app/v/MmBKuPZLZUQ/?t=3149) So Fidji is a very special type of nerd that we have not yet detected. Indeed, indeed. And so, you know, I looked at that and I was like, that would have been totally impossible before. And I'm like, this tool sees me. And so I think that's the magic of Pulse. And there's so much more coming because right now we're just scratching the surface. I'm so curious about where ChatGPT is going as a product this year. How's it going to evolve? Yes, so the big transformation is going from what is still essentially a reactive chatbot to a personal super assistant that allows you to get life done, like all the tasks in your life done. [53:02](https://realalpha.app/v/MmBKuPZLZUQ/?t=3182) And that means a lot of transition. That means like going from reactive tool to a proactive tool. We were talking about Pulse a second ago, like that's the proactivity. It means going from a tool that's still fundamentally text-based to being much more visual and multimedia. It means going from a place where you're mostly just getting information to a place where you actually set up a task and it just gets it done. And so there's a bunch of these things that we are now seeing coming in the product, but need to really amplify. And I think, you know, by the end of the year, it should really feel like your assistant that allows you to get every part of your life done in a much more efficient way. [53:41](https://realalpha.app/v/MmBKuPZLZUQ/?t=3221) As you think about the idea of your assistant, I feel like there are different philosophies around what that might mean. Like I'm someone who's always trying to learn new things and be very curious. And sometimes I find when I open Reels or TikTok that it's showing me too much of the same. Yeah. You know, how do you think about waiting in terms of the personal intelligence, showing you more of what you like and what you're interested in, and more of things that are probably riskier from an engagement point of view, but might be better as a person to have seen and potentially dig into, to grow as a person? [54:11](https://realalpha.app/v/MmBKuPZLZUQ/?t=3251) Yeah, that's such a great question. You know, in Pulse, we actually ask you like pretty much every day, like, hey, we showed you these five themes. These are more that you would like to see. We even show you like, these are some related themes that you might want to expand into. What do you think? And so the fact, again, that we have a conversational product that you can steer is like a massive difference compared to all of these other products because in these other products, there's very few ways to give feedback. It's like a thumbs up, an X out, but you can say, hey, I've seen a lot about fantasy reading. [54:46](https://realalpha.app/v/MmBKuPZLZUQ/?t=3286) Show me a little bit more about something else. And in our product, you can. So we're leaning really hard into steerability and also like figuring out interfaces where we can like start to expand your world a little bit and show you things that are adjacent so that you can tell us if you like it or not. This is a big shift for tech, right? I mean, as someone who's been following Facebook and Instagram forever and, you know, listening to people like Adam Assari speak for a long time, I think there's often been this idea, I would say led by Facebook that what you click is what you want. And that's more of what's good for you. [55:19](https://realalpha.app/v/MmBKuPZLZUQ/?t=3319) And now I was very surprised to see and delighted that Instagram is letting you choose what appears in the algorithm, which could ostensibly result in you using the product less. Why do you think that change is happening now? More broadly, too, just across tech. You know, I think it's happening because people have realized that like at some point you go into these rabbit holes and it's very hard to get out of that. And I think the technology has evolved that allows us to steer, which wasn't possible before. And I also think that your point on like in my results in using the product less, like I actually think no one believes that. [55:55](https://realalpha.app/v/MmBKuPZLZUQ/?t=3355) I think everyone believes that if we allow you to steer and allow you to expand your horizons, you're actually going to discover things that makes a product much more engaging over time because repetition at some point gets boring. And if you don't know how to get out of it, you end up using the product less in that case. So I think actually it is a way to get people to solve their needs better, but also I think it does accrue to the platforms ultimately. And what you guys are talking about, it seems inherently at odds with the traditional ads driven business model, right? And I know you guys say we will not go for time spent in ChatGPT. But as ads scale, do you have confidence that that can actually still be true, that you can do what you're talking about and have steerability and ultimately try to make a product that makes people feel better and more productive and grow and still have an ad driven business model? [56:46](https://realalpha.app/v/MmBKuPZLZUQ/?t=3406) I just don't think that's, has that happened yet in the history of tech? Well, so the thing that's interesting is if you look at our revenue projection, which I'm not going to give you in details, ads will remain a minority of our revenue in our projections. For like years or how long are we talking? For many, many years. And I think probably forever. And so, you know. Really? You don't see it being the majority of the business at some point? No. I think that it's a very helpful business model for the reasons we mentioned, but I actually really don't think it's going to be the majority of the business. [57:18](https://realalpha.app/v/MmBKuPZLZUQ/?t=3438) When you look at the market on the B2B side for, you know, companies paying to accelerate themselves with AI, when you look even at like, you know, propensity to spend for some people who are going to want the maximum access of intelligence, like, I actually think it stays a minority. And that's very helpful because that allows us to stay focused on like really just building the absolute best product. And ultimately, you know, I think even in the cases where companies have gone the way of like optimizing for time spent, etc., I'm not sure that serves them well for the long run, even in terms of revenue. [57:52](https://realalpha.app/v/MmBKuPZLZUQ/?t=3472) And so I think we've learned from all of these lessons. And I think optimizing for having a product that's useful is likely the best path to optimizing for revenue long term anyways. And I think we all know ads are a great business, if not one of the best business models ever created with the auction where advertisers are going to pay exactly as much as they need to to reach this exact person. But I remember Sam went so far as to say that ads would be a last resort. What changed there? The main thing is what we've discussed, which is like it costs a lot to serve the best intelligence in the free tier and the realization that ads were mission aligned. [58:29](https://realalpha.app/v/MmBKuPZLZUQ/?t=3509) You know, I think I think it's easy for founders to start from that place. Like, you know, ads is kind of unnecessary. And I think he realized over time that, you know, we we really had like a very good way of serving more intelligence to as many people as possible with ads. So it's simple. Alex wouldn't have found this jacket if it wasn't for ads. That's not true. I'm sorry. It looks great. It looks fantastic. I actually bought that one through ads. It's likely coordinated. Yeah. So your title is CEO of Applications. And when Sam announced that you were coming over last year, I believe there was only really one application at the time. [59:04](https://realalpha.app/v/MmBKuPZLZUQ/?t=3544) And when I saw the S at the end, I was like, oh, a bunch of stuff's about to happen. And it did. And we got Sora and we have the Codex app and the Frontier announcement that just came out and all of that, the B2B stuff. I'd love to just get a lay of the land with you on where all this stuff is at. I think Sora is one that he and I are deeply fascinated and you were making videos this morning, playing around with it again. And like, it had a huge pop, big moment. And it was the first also inherently social product that OpenAI had done. And you have a lot of experience with social networks. Are you all happy with where Sora is at? Is retention good? Is it growing the way you'd hoped? Yeah, so the goal with Sora was really nail the creativity, right? Like that goes back to the point I made at the beginning. We're at a really unique moment in time where AI can help everyone express their creativity. And that works superbly well. Like, you know, if you look at people who download the apps, they create a ton of videos. But a lot of these videos are shared sometimes in small groups, in messages, etc. So on the consumption side, I think we still have to crack, like what is going to be something that people want to consume and create that feedback [1:00:06](https://realalpha.app/v/MmBKuPZLZUQ/?t=3606) loop of consumption and creation. But I think we've hit on something really profound, which is like, you know, most social apps are purely about consumption. We have started from the creation place and really nailing creation. So we're really excited about that. It's still very early, but excited about what we're seeing. Is there opportunity for more social networking from OpenAI in the future. There was a story about maybe a human only social network. I think it's kind of crazy how much the AI industry still lives on X. And I would imagine Sam and some of you would probably like to have another surface that is outside of Elon's control. Is there, give us a little tease. You know, nothing really specific in the works, but the thing we're thinking a lot about, and I think everyone is thinking a lot about, is like what happens to like social relationship in a world where everybody has their own personal agent and like how can these personal agents maybe help you manage your social relationship in a better way like if your agent and my agent were like communicating ahead of this interview would that interview have been better and so kind of they could have got a fight too yeah so like so the clodbot concept basically [1:01:12](https://realalpha.app/v/MmBKuPZLZUQ/?t=3672) right like well i think you know the mold book well mold book is interesting i find it fascinating But it's interesting because it's mostly agents talking to each other, but without a lot of necessary benefits. Human direction. Yeah, they're human, right? Yeah, yeah, yeah. And what I'm thinking about is like, I really believe that AI is in service of humanity. And so I look at it as like, okay, how can the agents help improve social relationships, like existing human social relationships? So we haven't cracked what that will look like, but I think that's a very interesting area of exploration. [1:01:43](https://realalpha.app/v/MmBKuPZLZUQ/?t=3703) An agent social network. So yeah, but mediating human relationships, right? This episode is brought to you by Accenture. When your advertising operations fall out of sync, everything else follows. Spotify and Accenture are working together to reinvent the rhythm of ad sales, using automation, analytics, and smarter workflows to simplify campaign delivery and access better data across the business. The result? Less time spent on operations, more time connecting brands with the moments and fandoms that matter most. Learn more at Accenture.com slash Spotify. This episode is brought to you by Google Chrome. [1:02:23](https://realalpha.app/v/MmBKuPZLZUQ/?t=3743) You think you know a browser, but Gemini and Chrome? That's new. It can help you with practically anything on the web, like restoring a vintage motorcycle from a 50-page restoration block, or finally break down that long article you've had open for weeks. Gemini and Chrome is here for it. Ready to make anything online make sense? There's no place like Chrome. Check responses set up required compatibility and availability varies 18 plus. Yeah, going back to my Snapchat years, I think new forms of creativity, there's almost nothing that brings friends together than laughing about something amazing together, especially if you're able to use a filter that reflects an inside joke or create a Sora video about how hungover I'm going to be after the Michigan game with my friends and be wheeled out in a wheelbarrow, which I did create on Sora and which we will run the clip and it did a great job at. [1:03:18](https://realalpha.app/v/MmBKuPZLZUQ/?t=3798) But the other thing I learned at Snap is that most people are not going to go to a separate app just to create. And it's so hard to get most of your friends circle on another app these days, even if it's good. And that's one of the things I learned within Snap was that like having it actually built on top of the friend network was actually pretty critical. Yeah. And I know Facebook's done this better than anyone in tech, right? Right. Over years. And I, yeah. And I was going to say, I know over the years, Facebook has experimented, some features were added or Instagram within the product. Some features, let's say edits or the video creation features were separate apps. Are you thinking, how are you thinking about that strategy now? What deserves to be? When is it an app? Yeah. You know better than anybody that if you pop it into chat GPT, including the ChatGPT homepage, which I know is a very valuable thing on my phone. [1:04:05](https://realalpha.app/v/MmBKuPZLZUQ/?t=3845) Whatever it's going to tell you to do, it's really going to juice engagement. But with Sora, let's make it another app. Well, we're experimenting with a lot of things. I think the idea of video generation coming to ChatGPT is an obvious thing, right? Like ImageGen has been incredibly successful in chat. You can imagine VideoGen having a similar moment. So we think that there's multiple avenues. I think the thing that was interesting with Sora is just the thesis of like having an app that's so focused on this that consumption triggers creation. And like the best moments in Sora is when you see something and you're remixing it with like your own friends. [1:04:42](https://realalpha.app/v/MmBKuPZLZUQ/?t=3882) Right. And it has inspired a lot of videos that I wouldn't have created otherwise. You know, I realized playing with Sora, I think I have a lot of imagination, but at some point it runs out. Like my daughter did like 10 videos of me as an elf on the shelf during Christmas. And at some point it gets a little old. But then you go into the Sora feed and you see all of these like incredible, funny ideas that come out of nowhere. And then you're like, oh, I want to be in that video. And that flow requires an app that has a contained experience so that you can see that. Were you guys hoping that it was going to be a daily, weekly habit when you made it? [1:05:19](https://realalpha.app/v/MmBKuPZLZUQ/?t=3919) I think we were just like, it was the first time we were creating something like that. So, you know, we were just trying to see what could happen. We had created like V1 of Sora without like some of the social dynamics. And so we really wanted to see what would happen. And the thing that fascinated us is just the rate of creation. Like when people start creating, they create like 10 videos at a time. So I think it validated a lot of that and gave us even more convictions that allowing people to create in any type of medium is going to be really important for the future of AI, but no real expectations. [1:05:53](https://realalpha.app/v/MmBKuPZLZUQ/?t=3953) Back to chat GPT, I know the health stuff is a big priority for you. And it's fascinating. I was just trying to look at it and there's still a wait list. do you think that new health experience gets rolled out broadly and how do you think that's going to change the way people think of the product? Yeah so just take a step back like the thing I'm looking at is like all of the big use cases of chat and if you look at those big use cases you can imagine creating a dedicated experience for each of them like people 40 million people a day ask chat GPT for health advice tons of people ask for jobs advice tons of people ask for personal finance advice. [1:06:30](https://realalpha.app/v/MmBKuPZLZUQ/?t=3990) So you look at that and you're like, oh, we can really make that better by hooking it into the right connectors. For example, with chat GPT Health, it's like connecting to your health records, connecting to Apple Health. But you can imagine that for a lot of experiences. So I'm really looking at that as like, how do we do the best job possible at the biggest use cases? And in the case of health, it is such a transformative use case when people start using it, they realize, oh my God, like my entire life is transformed if I can, you know, have this like assistant on one of the most important part of life. And so we're really excited about it, but we really want to get it right. So part of, you know, the waitlist is really making sure that when we touch something as sensitive as analyzing all of your health records, and we give you advice on that, that the experience is really flawless. So we have had a lot of like truly magical experiences with people on the waitlist they post online and just tell us like i you know it would take me hours to combine all of that for my doctor it took me five minutes with chat uh they are telling us that we picked up on things that our doctors hadn't seen because they were looking [1:07:34](https://realalpha.app/v/MmBKuPZLZUQ/?t=4054) at the full picture so these are like the magical experiences that we want to make sure are like regular occurrences and then you know i think we'll open up soon but want to make sure it's really right and when that is rolled out do you want people to go there to ask health questions rather than the main chat interface because it's better grounded in the health app? Well, I think on the model side, we are going to give you great health responses regardless of where you ask. But the advantage of chat GPT health as a separate space is that it has an added layer of privacy for your health record and for the sensitive health information. [1:08:07](https://realalpha.app/v/MmBKuPZLZUQ/?t=4087) So if you go there, we are making sure that the rest of the chat GPT experience doesn't see the data that you're, you know, connecting in this particular spot. I'm excited to talk about my moles with ChatGPT when appropriate. It does a great job. Take a picture. Can I see those moles? Show me your moles. Oh, man. Open the camera. This is a horrible segue now. Thank you. But I was going to ask about adult mode. Oh, no way. Perfect. Perfect. Perfect. You guys are, I believe, trying this in a few markets. You're seeing how it works and how the model can predict age. And there's also, I think, been some misconceptions about what it is. I think when Sam first talked about it, I think people were like, oh, you're going to be able to have like porn and chat to be TV. [1:08:50](https://realalpha.app/v/MmBKuPZLZUQ/?t=4130) Yes, that's not the plan. That's not what's happening. Maybe to some people's chagrin, but that's not happening. So what is actually happening? What is adult mode and what is it going to do? Yeah. The idea is really simple. It's like we have a principle of letting adults be adults and treating them as such and treating kids as kids. So that's why we really want to make sure that we have edge predictions so that we can differentiate the experience. But for adults, you know, like we are seeing that people are going to have like some relationship, emotional relationship with child GPT. And like if they want to explore and go into, you know, more erotic talk, like I don't think it's our place to say like, nope, that's not appropriate. [1:09:33](https://realalpha.app/v/MmBKuPZLZUQ/?t=4173) And so, you know, like plenty of people read like spicy literature. And, you know, I think that's perfectly acceptable these days. And that's really what we're talking about is like chat GPT not stopping every time you like make an ask to talk about sex or anything like that. And so I think it's we're going to do it very thoughtfully, meaning like you are only going to get into that experience if you really ask for it. Like you're not going to, you know, be talking about like booking a trip and stumble upon that. So that's really only going to be for people who really want that. But if people want that, I don't think it's our place to stop it. [1:10:10](https://realalpha.app/v/MmBKuPZLZUQ/?t=4210) So it seems clear that y'all are thinking a lot internally about some of the negative consequences, like the rabbit holes you were talking about. What's the latest and greatest chatter internally, or even among other CEOs you know, about AI relationships and companionship? attachment thing i mean i was watching sam do an interview recently and the comments on youtube were all people asking about 4l it's like the level of attachment people had to that model and what you guys were surprised with when you deprecated it yeah what is and your experience in social media too going to this like i mean you've seen this play out in other formats in tech so yeah yeah so to me and that's where we draw the line right we say having a emotional relationship with an ai is going to end up being a pretty accepted thing because when you think about it people develop like humans are built to develop attachment to intelligent things we deliver like we develop attachment with our pets and like and AI is getting pretty intelligent so I don't think like I don't think the idea of like we're just going to stop all humans from having any like [1:11:13](https://realalpha.app/v/MmBKuPZLZUQ/?t=4273) **Fidji Simo:** sort of relationship with AI is at all reasonable however I think we have to have guardrails in the product to prevent the bad kind of attachment so for example we really prevent the model from [1:11:26](https://realalpha.app/v/MmBKuPZLZUQ/?t=4286) leaning into exclusivity like oh we are exclusive you need to separate yourself from other people in your life like the model does not say that we have very strong guardrails against that we prevent cases where the model uh responds with things that could have a big impact on your life so like hey should i leave my wife and the model like has to respond hey that's not my place let's talk to the pros and cons whereas the previous version said yes kevin roos please break up with your wife and you know like we're always refining and so that's that's kind of the point we learn we refine we make sure it doesn't say that so we we really try to like realize that emotional attachment is going to be a thing but prevents the wrong kind of emotional attachment and then you know one question i have and i'm actually asking my team to study this is like is like right now we perceive emotional attachment as necessarily like not great but i think it's a very privileged position i think like in tech we we perceive it that way but if you look at the stats about like like mental health in the u.s loneliness is an absolute epidemic and what we're hearing from people including the people is saying like you know we're pretty isolated we don't have close friends and for [1:12:42](https://realalpha.app/v/MmBKuPZLZUQ/?t=4362) the first time we're able to talk to like a thing that responds to us and supports us in our bad times and i i worry some sometimes that when we approach the problem from like oh emotional attachment is bad it usually comes from people who have a very strong social network of humans and not you know people who are struggling and so i want to make sure we have some nuance but this is new science like this is new behavior new science so we're studying it to make sure we do the right thing and that's why we're also relying on on a network of psychologists that reminds me of people critiquing like people who would spend time in vr it was kind of like well yeah, like maybe they don't have a lot else going on. And like, if you do, maybe it's hard to see why someone would wear a headset and want to interact with other people. But it kind of reminds me of that. Yeah, I find it quite condescending. I think it also really depends, as you're saying, what it is incentivizing or pushing or catalyzing, right? Like in the last year, I've worked with both Friend AI Pendant and with Replica on what they're building. And it's exciting to see that a lot of companies in tech are having very different approaches to what [1:13:48](https://realalpha.app/v/MmBKuPZLZUQ/?t=4428) a companion could do besides just validate you, which hopefully gets old at some point. I'm definitely a believer that humans do adapt to technology and whatnot. I think the friend AI pendant, maybe to a fault, plays devil's advocate in a really interesting way, almost like a friend who isn't your perfect supplicant, you know, and then the new version of replica, which I can't say a whole lot about, but there is a philosophy about the interior versus the exterior of your world. Do we believe that you're going to be a happier person if you're just talking to the AI or can the AI potentially push you toward what we believe is going to be a happy, fulfilling life, which I think is interesting. Have you guys codified any of those types of priorities into chat yet? Yeah. When you look at even our model spec and what we use internally in our charter uh we are actually like really codifying that we want you we want to nudge you towards like the most fulfilling part of your life and that means uh you know you are talking about sycophances that means that we also uh do a lot of work to avoid sycophances that would drive you towards just staying put and doing the same thing over and over again without progressing. So we try to find this fine line between being supportive, [1:15:11](https://realalpha.app/v/MmBKuPZLZUQ/?t=4511) which is actually a very important trait in a friend and assistant. So being supportive, but not to the point of giving you bad advice. And so also nudging you towards better behavior. And that's a very fine line. We constantly refine how we train the model towards that. We constantly give it more examples. But that's definitely the goal. Yeah, I mean, the new Anthropic ads, I mean, I did like them and think they were funny just because of the performances I told you, but it almost refers to a version of AI that kind of isn't even there anymore. Totally. Absolutely. I love your ideas. I mean, that's like, you know, SNL was doing that months ago. [1:15:51](https://realalpha.app/v/MmBKuPZLZUQ/?t=4551) Yeah, it's a little late. I feel like we're all past that. I want to know what is it like working with Sam? And what was it like leaving Instacart? And I mean, you're the CEO of a publicly traded company and like in deciding to go work with Sam. What has that been like? Because he's so out there, right? It's kind of like we were talking about this on the way here. Like when you were working with Mark, like Mark wasn't tweeting 10 times a day. So what is that like? You know, it's been amazing. And I had the luxury of being on the board for like a year or so before deciding to join. So I was already working with Sam and seeing how he works before I decided to make the jump. [1:16:33](https://realalpha.app/v/MmBKuPZLZUQ/?t=4593) It wasn't an easy jump to make. You know, I was very happy at Instacart. But the mission is so incredible. And even personally, you know, I've been public about having a chronic illness. And I really believe that AI is our best shot at curing disease. So it became very much just a personal mission. And working with Sam has been incredible. He's like, you know, after working for Mark, I did not think that I would work for anyone else because he's such an incredible leader and futurist. But Sam's ambition is like absolutely incredible. And his vision of the future. I mean, the guy lives, you know, 10 years from now. [1:17:10](https://realalpha.app/v/MmBKuPZLZUQ/?t=4630) And we probably just have a good telepathy between him and I. But he's just an incredible visionary. And so that makes it really fun to work for him. Do you have push notifications set up on your phone for when he tweets? I'm sure Alana does over there. Because you got to know, right? And I think that can cause issues, I would say, with a CEO that is always speaking. I think internally, people can get pretty focused on that. and fixating on whatever these short-term ideas are over the long-term idea. We know the founders that we love are some of the most curious learners in the world. When you see their tweets, you want to show them a presentation about that the next day, right? [1:17:57](https://realalpha.app/v/MmBKuPZLZUQ/?t=4677) Yeah, I think, you know, the thing I love about Sam is like, it's just very authentic at the time where we're missing some of that, right? And so like, yes, I want to follow what he's saying because usually that creates quite some noise. but but at the same time i think that's also his superpower right like he comes across as someone who really cares and someone who's like really uh visionary and like communicating some of that is helpful because i think the world needs to hear that and then you know i think about the company like when you when you talk about what does that do to the company we have so many like very important ambitious long-term plans we're talking about chat but it's the same for codex It's the same for B2B. [1:18:41](https://realalpha.app/v/MmBKuPZLZUQ/?t=4721) Like we have a very long-term vision on all of these products that I don't think people get that distracted. They are very focused on the mission and like the long-term vision for these products. We need an internal Slack bot every week says, here's your weekly time to reread the mission and vision. I mean, as smart as we all are, I think whatever the latest and greatest is, is very infectious within companies. And it would appear that, you know, OpenAI can be at times driven by whatever's the hot new thing. I mean, how do you guys navigate those urges? Well, I think we create a hot new thing, right? [1:19:18](https://realalpha.app/v/MmBKuPZLZUQ/?t=4758) Like, so I think it becomes a hot new thing because we thought about it six months ago and created something. I also think that the pace is increasing. Like with Codex, you know, you can go from an idea to a prototype within days. And so that pace is going even faster. So, you know, we go from idea to something being public in a very short amount of time now. And so I think, you know, it's the thing I always say is just like companies that are doing something so important get a lot of scrutiny. The real challenge is just staying focused on the mission, staying focused on our products and not getting distracted by the noise. [1:19:57](https://realalpha.app/v/MmBKuPZLZUQ/?t=4797) There's a lot of noise in AI in general. But I think the advantage is just having a very clear vision that we're drawing towards. Right now, my understanding is you have all of the quote unquote normal company stuff, right? And Sam has research and compute. Correct. How does that work? Like how? I mean, obviously, you and he talk all the time, but like, how does that division actually play out internally? Because that seems like an unusual setup. yeah and for an unusual company right so i think it works for us but i think the thing that's really important to understand is like all our strengths come from being both a research and deployment company for me as a person in charge of deploying it's like i'm like a kid in a candy store having access to the best research lab in the world that can create these breakthrough technologies right so So I definitely could not, my org could not exist without the research lab. [1:20:55](https://realalpha.app/v/MmBKuPZLZUQ/?t=4855) Meanwhile, if you're in research, you want your breakthroughs to be experienced by people. So, you know, there is a little bit this narrative in press right now that there's tension between research and products. I think it's that opening eye is becoming big tech, right? That it's like people like you and ex-Facebook people coming in and the researchers are like, I don't want to actually have to focus on like shipping this stuff. And like, I think that is the narrative. Yeah. That's the narrative, but that's so not the experience internally. Like, you know, Mark, who leads research, and I are tied at the hip. [1:21:24](https://realalpha.app/v/MmBKuPZLZUQ/?t=4884) And what I can tell you is like, [1:21:26](https://realalpha.app/v/MmBKuPZLZUQ/?t=4886) **Fidji Simo:** all researchers want to see products in the world. They have these incredible breakthroughs. They don't want to just publish a paper. [1:21:32](https://realalpha.app/v/MmBKuPZLZUQ/?t=4892) They want to make sure that people use these discoveries, that companies use these discoveries. So like researchers are pushing me on like, you know, how are we going to get this out? Like, why aren't we getting it in the hands of even more people? So there is definitely an appetite to get out there. And I think what Sam and Mark have done and Jacob so incredibly well is protect research to make sure that we can still invest in the very long term. So the thing that would be bad is if I was going to the research team and telling them I need these five things. No GPUs for you. I need GPUs. Or like I didn't even think of that because I would never do that. [1:22:10](https://realalpha.app/v/MmBKuPZLZUQ/?t=4930) But you get the GPUs, but like I need you to deliver these five things for the product. That's not how it works. The way it works is like, you know, Jakob and Mark set the research direction for the long run. And then, you know, after months of work, something incredible emerges. And I get a researcher pinging me being like, hey, I have something pretty cool. How are you going to use it in chat? How are you going to use it for our enterprise products? And that's like the magic of the place. So we can do both the long-term research as well as, you know, continuing to innovate directly on our products. [1:22:43](https://realalpha.app/v/MmBKuPZLZUQ/?t=4963) Is maybe some of this the code red and just the fact that resources were shifted to focus more on chat and it's more of a temporary thing? Do you think that could be where some of the narrative is coming from? Maybe, but even when you look at the Code Red, that did not impact whatsoever the teams working on long-term research. They heard about the Code Red probably in a Slack channel and went back to their day and were not impacted at all. The teams that were impacted were the ChatGPT team or product research team that is working directly on chat. Those teams were impacted, but not the long-term research teams. [1:23:14](https://realalpha.app/v/MmBKuPZLZUQ/?t=4994) Are you out of that? Are we out of Code Red? We're still hoping to ship a new version of the chat model soon. And then we will exit the code red then. But, you know, even the code red, it's like it's a tool for us to accelerate execution. And I think that's a useful tool to marshal resources towards something. You took Instacart public and there are all these rumors about an OpenAI IPO. Elon appears to be trying to go out first. And I'm actually curious as a CEO who took a company public, like you understand these IPO mechanics very well. Is there a sense of like going first really matters? because it's like now there's this like, well, it probably will be Elon, but like, well, then it'd be OpenAI or Anthropic or like, well, one of them try to go like, does that matter? Are you thinking about that? I don't think so. I mean, nothing to announce an IPO, but I don't think it really matters. I think everyone realizes that the AI market is so big, the pie is so big that there's going to be space for multiple players. We're a very clear, you know, market leader. And so we, like our position. And most importantly, we're focused on executing really well, not focused on an IPO, just focused on building great products. Because if you do that, [1:24:25](https://realalpha.app/v/MmBKuPZLZUQ/?t=5065) everything else takes care of itself. I know one of the big battles right now for the future is with the AI coding assistance or generators. When you guys think about Codex in the future, what outcome gets you and your team the most excited? Is it that Fortune 500 companies get bigger and faster? You know, I know there's a lot of money there. Is it that there are more solopreneurs able to build their own product and make a business? Is it that more human problems get solved that couldn't have been solved because it took five people to make an app before and they can't sell product to a few hundred people? You know, what outcomes excite you most with Codex? [1:24:59](https://realalpha.app/v/MmBKuPZLZUQ/?t=5099) Why do I need to pick? Well, I would tell you like, it's been like the last month has been just so insane because we really crossed the threshold of like everything becoming possible with codex and and we are seeing like even internally just people reach for codex first before reaching for any other tool and and that's like a really interesting time and so i think i think it's a lot of those things obviously i'm very interested in like scientific breakthroughs because I think that's what, you know, leaves humanity the most. But in the short term, I think we're going to see just massive productivity gains by companies that are going to be able to reinvest that in building even more better things for the world. [1:25:46](https://realalpha.app/v/MmBKuPZLZUQ/?t=5146) I do think that solo companies are going to be possible. [1:25:49](https://realalpha.app/v/MmBKuPZLZUQ/?t=5149) **Fidji Simo:** I was literally just talking to a guy yesterday that built an entire thing that would have taken teams of hundreds. [1:25:57](https://realalpha.app/v/MmBKuPZLZUQ/?t=5157) And I was like, oh, this is amazing. How large is your company? he's like it's just me and and i was like that's that's incredible uh and so i i think to to me the biggest underlying thing is reminding everyone that we all have the ability to create we all have agency and now these tools allow you to create even if you didn't know how to code even if you didn't know how to create a video and that is a very powerful thing when you think about the future of humanity if everyone could be reminded of their own agency and ability to create I think we would create a better world. In the pantheon of these big products, do you think there's a world where maybe Codex is more impactful than chat? [1:26:39](https://realalpha.app/v/MmBKuPZLZUQ/?t=5199) Absolutely. But I think it's not just like those products as completely separate. It's like when you think about what chat needs to do, I was telling you a minute ago, it needs to go from a chat bot to a personal assistant that can do any task. You can imagine a lot of what Codex is doing powering chat. And so I think there's going to be a convergence of those products over time. But the underlying harness of Codex is allowing us to do so many things, not just in coding, but even in other industries. What is a ChatGPT prompt that you think people should be using? Damn, good last question, Alex. You didn't tell me about that one. [1:27:22](https://realalpha.app/v/MmBKuPZLZUQ/?t=5242) I know. That just came up with that. You didn't put that in the doc. Nope. It's a great one. I generated that. You know, the ones that I loved and circulated a bunch on Twitter a few months ago was like, based on everything you know about me, what do you think are my blind spots? And how do I kind of evolve towards that? I thought it was surprisingly accurate and annoyingly accurate for me. So that was great. And then, you know, I think... Oh, come on. What were they? We don't have time. Can we get one? And then I think the other thing is encouraging everyone to use it for health. The stories I'm hearing of people, you know, like finding out about the diagnosis that they've been like, you know, going to 20 doctors for and chat identified it. [1:28:14](https://realalpha.app/v/MmBKuPZLZUQ/?t=5294) I think people are going to find amazing things to make their health better through chat. And I'm really excited for that use case. Molt bot out, mole bot in. thank you Fidji that's it for this week's show thanks again to Fidji for coming on don't forget to like subscribe everywhere you get podcasts we're access.show on the interwebs as well and you can find us in video at accesspod on YouTube if you like this episode please leave a 5 star review or a thumbs up and share with a friend You can find my newsletter at sources.news. You can find me at Hamburger on Twitter and at meaning.company for your startup storytelling needs. [1:29:04](https://realalpha.app/v/MmBKuPZLZUQ/?t=5344) Thank you.