Google Quietly going to Roll Out Ads Inside AI Chatbots

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Hey everyone,

When AI exploded onto the scene in 2022, many of us had the same thought: "Is this the end of Google?" After all, why would anyone keep using a search engine when you could just ask an AI for answers?

I remember thinking Google's ad business—their money machine—was in serious trouble. But something in the back of my mind kept saying they wouldn't just fade away without a fight.

And I was right. Google has been working on something big behind the scenes.

In today's spotlight, we're diving into exactly what Google's been doing to respond to the AI revolution and how they're transforming their business beyond the traditional search box.

What’s inside today’s newsletter:

• 🌐 Tech Pulse: OpenAI Dominates Enterprise AI Market, Competitors Struggle

• 🔐 Prompt Vault: Feature Drop Announcer

• 🔧 New Tools on the Block

• 🔎 Spotlight: Google Testing Ads in AI Chatbots, Not Yet in Gemini

• ✅ To-dos

🌐 Tech Pulse

• Apple Developing New Chips for Smart Glasses and AI Servers

  Apple is reportedly working on new processors for smart glasses similar to Meta's Ray-Ban Meta, as well as more powerful chips for Macs and AI servers. One chip design is inspired by Apple Watch's low-power processors, with production expected by late 2026 or 2027.

• SoundCloud Changes Terms to Allow AI Training on User Content

  SoundCloud has quietly updated its terms of use to allow AI training on audio that users upload to its platform. The February 7 update explicitly states that user content "may be used to inform, train, develop or serve as input to artificial intelligence," joining platforms like X and LinkedIn in enabling AI training on user-generated content.

• ChatGPT's Deep Research Tool Gets GitHub Connector

  OpenAI is enhancing its AI-powered "deep research" feature with a new GitHub connector that allows ChatGPT to analyze codebases hosted on the platform. This addition enables users to ask questions about specific code repositories and receive detailed responses.

• OpenAI Dominates Enterprise AI Market, Competitors Struggle

  Transaction data from fintech firm Ramp shows OpenAI significantly outpacing rivals in enterprise AI adoption. As of April, 32.4% of U.S. businesses were paying for OpenAI's services, up from 18.9% in January, while competitors like Anthropic (8%) and Google AI (0.1%) lag far behind.

• Google Partners with Elementl Power for Nuclear Energy

  Google and nuclear site developer Elementl Power announced a collaboration on three sites for advanced nuclear reactors. The deal supports Google's AI ambitions and growing data center power demands, with each site set to receive at least 600 megawatts of generating capacity.
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🔐 Prompt Vault

This week’s AI shortcut to save time or spark action.

🧠 Prompt Name: Feature Drop Announcer
Quickly generate a punchy launch post for your product’s latest feature.

📋 Prompt:

💡 Why it’s useful:
This prompt helps founders and indie hackers instantly write high-performing product launch posts without wasting time thinking about wording — perfect for Twitter, LinkedIn, or Product Hunt teasers.

💼 From our Partners

🔧 New Tools on the Block

1. DeckSpeed: Cursor for slides.

2. Tate-A-Tate: From idea to Al Agent in minutes—zero coding.

3. Znote: Continue your ChatGPT chats inside smart notes.

4. AI Knowledge Search by Amurex: One search. Your emails, docs, notes - all connected.

5. DockDoor: Window peeking and alt-tab functionality for macOS.

Want to sponsor your tool in our newsletter? CLICK HERE
*sponsored

🔎 Spotlight: Google Testing Ads in AI Chatbots, Not Yet in Gemini

Unsurprisingly, an advertising company is finding more places to run ads.

What it is: Facing the possibility of AI chatbots becoming a primary way people find information, Google is exploring ways to monetize generative AI, which is currently very expensive to operate. The company is quietly testing placing its AdSense ads within select third-party AI chatbots, suggesting a potential future where free chatbot experiences may include advertising. This move, along with hints of expanded subscription tiers for Google's own Gemini chatbot, points to Google's strategy for turning its significant AI investments into a profitable business as user behavior shifts.

Why it matters:

• Shocking Reality: Running generative AI is INSANELY expensive - we're talking billions annually just on hardware and power. Literally no one has figured out how to make this profitable as a consumer business yet.

• Google's Dilemma: Their $50+ billion search ad business is under threat as people shift to AI chatbots for information. They're not sitting idle though - they're actively adapting AdSense for the chatbot world.

• Already In Testing: Google's testing their ad tech with AI startups like iAsk and Liner, plus opening "AdSense for Search" to more chatbot creators. They're essentially retrofitting their money machine for the AI era.

• Free Users Beware: While Gemini isn't showing ads yet, sources literally say "the free ride may be coming to an end." Soon we'll likely face a choice: pay up or deal with ads in our AI conversations.

• Premium Tiers Expanding: Beyond ads, Google appears to be prepping a "Gemini Ultra" tier above their current $20/month plan. Looking at competitors charging $200/month, Google might be eyeing similar premium price points.

• Bottom Line: These tools cost too much to run for free forever. The future likely holds either ads in our AI tools or paying a premium to avoid them. The economics just don't support the current model.

Source: Ars Technica

 😂 Builder Memes

✅ Call to Build

Try this today:

“Can you build a micro-SaaS that lets creators watermark their AI-generated images using Make.com in 1 hour?”

Tag us if you do. We'll reshare your build.

If you like today’s issue, consider subscribing to us.

That’s a wrap! Catch you in tomorrow’s edition. 👋

—Harman

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