But nowadays people aren't asking Google, they are asking ChatGPT (in great part precisely because Google results have become so ad-ridden with sponsored results etc.).
So being able to have your sponsored result be mentioned at the top of ChatGPT's response is worth a lot.
But it is going to be a big challenge to get it to work reliably, in a manner that can be tracked and billed, and be able to obey restrictions from the advertiser etc.
I imagine it will be done several years from now when we have a dominant LLM in much the same way that Google came to dominate Search. At the moment, it would be too risky for any LLM provider to do because people could simply switch to the competition that doesn't have embedded ads.