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I actually use Claude for finding stuff and recommendations. like "Find me a decent shoe with blah blah conditions" this query now goes to LLM Chat instead of google search. I use google search to find the url of something that i know exists like find the website of a company or finding address of a store.
The issue is Claude is losing money serving you that, and while Google makes money serving you the same result. On top of that, you are paying Claude to get that same result.

Unless Claude adds ads, it isnt going to be sustainable for both Anthropic or you - and congrats, you've invented Google Search.

Google and ChatGPT are both running LLMs on free user queries. If Google is doing it more profitably, it’s because they have a much more mature ad business, and/or they are running a cheaper LLM. There’s no fundamental difference in the business model in that specific product line.

Regarding Claude, it’s true they must be losing money on free users since they promised they won’t put ads there.

Speculatively, I think people are overestimating the cost of inference for the consumer free tier chatbots. I suspect it’s effectively a marketing cost. The primary expenses are compute to train the next model, stock compensation, and heavy-duty enterprise inference (which pays for itself).

Eventually they will show ads. Ads are like disease, we can stop for sometime, but they will find a way to infect. Eg. Netflix, chatgpt etc..
Now get the other 99.99% of the (tech illiterate) population to do it...
Same I use models for nearly everything. Google only better at:

- fast, even the shitty AI results are nearly instant.

- some results like actors in a movie, or where to stream are useful

- instead of typing a url

But that’s it. I never use Google outside of that. It’s just ads, and most of the web is just ads or AI slop.

> But that’s it. I never use Google outside of that. It’s just ads, and most of the web is just ads or AI slop.

Funnily enough, their core revenue driver (Google Ads) is very broken too. I'm trying to run some ads, but for a week they haven't been showing due to some invisible combination of flags when the campaign was created. There's no way of knowing they're not showing from the dashboard, it only becomes apparent when you try and preview the ads with one of your search terms.

I know everyone is long Google but that experience seriously makes me question how valuable their ad business will stay in the future.

Yeah, but are you getting the perfectly targeted ads that Google serves you?