AI-powered martech news and releases: January 16

Will pure-play artificial intelligence corporations ever be profitable? If OpenAI is any indicator, it’s hard to see how.

The problem for any company creating these generative AI systems is the more people use them, the more it costs. So, what can be success for many businesses is definitely a money drain. Consider: OpenAI’s ChatGPT has greater than 300 million weekly lively users — greater than another pure GenAI company. It also has the bottom churn rate of those corporations, retaining greater than 70% of paid subscribers after six months. Sounds good, right?

However, earlier this month, CEO Sam Altman wrote, “Insane thing: we’re currently losing money on OpenAI pro subscriptions! People use it far more than we expected.” (Pro subscriptions cost $200 a month.)

This is the precise opposite of economy of scale. Instead of costs happening as production increases, they’re going up. The costs come from the computing power used to run ChatGPT. It requires huge investments in data centers and vast amounts of electricity to run them.

GenAI corporations are hardly the primary tech corporations to face this issue. It’s endemic to ride-sharing apps like Uber and Lyft and music streamers like Spotify, all of whom are actually creating wealth. In 2024, Uber and Spotify reported their first-ever profitable years, and Lyft had two profitable quarters.

But … their overhead costs are much, much lower than GenAI. Spotify went positive because of shedding 2,000 people and cutting its marketing budget. Last yr, OpenAI lost about $5 billion on revenue of $3.7 billion. I doubt OpenAI is spending $1.3 billion on marketing. OpenAI can also be affected by the commodification of GenAI. There’s no significant differentiator among the many GenAI offerings, which implies customers will have a look at price first.

Pure play GenAI corporations have all of the makings of an asset bubble: Lots of cash getting in and no clear path to profitability. The same cost issues are dogging non-pure plays. Google, Meta, Microsoft and others are making enough money elsewhere that AI costs aren’t going to cripple them. However, sooner or later, investors could get cranky about these massive outlays.

And, by the way in which, The Wall Street Journal reports that Google CEO Sundar Pichai wants 500 million people using the chatbot powered by Gemini AI by the top of this yr.

Here’s this week’s roundup of AI-powered martech releases:

(*16*)Quad/Graphics introduced At-Home Connect, a unsolicited mail platform that mixes the convenience of email with the impact of print marketing. The platform integrated data-driven design and messaging with precise timing to reinforce omnichannel marketing campaigns.
(*16*)Ardis Technologies included Axle AI Media Asset Management with its DDP storage system. This provides users with tools to generate proxies, organize media assets and utilize powerful search features inside the DDP ecosystem.
(*16*)Simpli.fi launched Simpli.fi Autopilot AI, an all-in-one tool that enables advertisers to administer omnichannel campaigns efficiently. The platform offers simplicity, control and a pay-as-you-go model with no minimum spend.
(*16*)Searchspring combined with(*16*) Klevu to create Athos Commerce, an integrated platform for ecommerce product discovery. Athos Commerce offers AI-driven search, personalization and merchandising capabilities.
(*16*)Algolia launched Shopping Guides, a content generation tool that uses AI to create informative articles for ecommerce web sites. These guides provide shoppers with useful insights at different stages of their journey.
(*16*)Hightouch launched Hightouch for Offsite Media Networks, a platform developed with Databricks. This solution enables retail media networks to construct and activate AI-enhanced custom audiences across various media channels.
(*16*)writerX.ai introduced a brand new platform to streamline content workflows. It offers tools for managing projects, generating content in bulk, integrating with WordPress and optimizing search engine optimisation.
(*16*)Stella, an AI marketing platform, launched with features to automate social media marketing and customer engagement. It helps small businesses create data-driven content and manage multichannel campaigns.
(*16*)Respond.io launched an AI-powered solution for TikTok Messaging Ads. This allows businesses to administer TikTok messages and conversations from other popular channels on a single platform.
(*16*)WellSaid announced the “Caruso” model for its AI voice platform. Caruso includes AI Director, a feature that permits users to regulate the emotional intonation of AI voices.
(*16*)PlayMaker launched as a platform to administer and optimize sponsorships in sports and entertainment. It uses AI to automate asset management and provides tools for collaboration and risk management.
(*16*)Adjust launched Adjust Growth Copilot alpha, an AI-powered solution designed to reply marketers’ questions and provide insights to assist them achieve their goals.
(*16*)Apollo introduced its “Win Deals” solution, which uses AI to automate tasks comparable to pre-meeting research, meeting scheduling and call recording evaluation.
(*16*)Lucidworks released its AI orchestration engine, allowing businesses to administer their generative AI initiatives. The engine provides tools for data acquisition, machine learning operations and security.
(*16*)parcelLab launched pL Copilot, an AI assistant that helps teams optimize customer communications and discover areas for improvement in operations. It also launched an AI Email Editor to automate email personalization.