Although I am curious if they are not worried and playing the long game confident that their distribution will eventually help them catch up (and worst case they own some of Anthropic). But obviously Anthropic and OpenAI have their own distribution now too.
Nobody is doing well enough with AI revenue ATM (https://isaiprofitable.com/). At the moment it is probably more about market share of users, that is where the investment capital will need to be clawed back from when it starts to be called back (or replacement money will need to come from if the investment cycle simply stops giving generously).
Online advertising has completely broken from anything resembling the traditional social-contract of magazine ads, billboard, signs, etc. They're preying on your safety and privacy, not just your attention.
[1] https://readwise-assets.s3.amazonaws.com/media/wisereads/art...
But what I see and hear from technical consumers, businesses, and govts is that they would prefer their data stay local, and like the idea of edge compute being used for AI.
Claude/OpenAI's direction with their Apps enabling deeper integration is a good direction, but the trust with data is still a growing concern. OpenAI's math actions on the NS problem degrades their reputation a lot.
I forget the name but I see one LLM chatbox that looked like one of those old world news media websites plastered from top to bottom with jumpy obnoxious ads. It did offer some good models for free. I honestly might even consider using it if I could remember what it was called.
If they turned Gemini into that today I think people would just laugh, shake their head and close the app.