Koah

$20.5M Series A led by Theory Ventures

Every major interface shift created a new economic layer. We’re building the one for AI.

Is AdSense for AI a Game Changer or a Flop?

Ari Paparo reviews the thesis that a new ad network could become the "AdSense for AI," prompted by start-up Koah’s recent $20.5M Series A and a blog post by Tom Tunguz. Paparo applies a "what needs to be true" framework and argues several conditions must hold for an independent AI ad network to scale: AI usage must be ad‑supported, AI ads must provide distinct, rich context, supply must be fragmented across many consumer AI apps, and independent networks must attract sufficient advertiser demand. He is skeptical about fragmentation and an independent network’s ability to reach demand at scale, noting incumbent platform advantages (Google, OpenAI, Meta) and historical precedents like AdMob’s acquisition by Google. Paparo concludes Koah and similar start-ups could achieve medium-sized exits but doubts any will become the dominant "AdSense for AI."

Anthropic‑DoD Standoff Signals AI's Manhattan Project Era

Super Summary: The newsletter reviews a week of major AI developments: Anthropic’s disputed relationship with the U.S. Department of Defense — including a reported $200M contract with explicit redlines banning domestic surveillance and autonomous weapons — led to Pentagon pressure and a rare “supply chain risk” designation that could restrict Anthropic’s defense and cloud business. OpenAI accepted a separate DoD contract amid the dispute, and the piece notes political entanglements (including a reported $75M donation by OpenAI co-founder Greg Brockman to Trump) that underscore how regulation and geopolitics now shape AI strategy. New details covered here include an announced OpenAI financing round (~$110B) backed by Amazon ($50B), Nvidia ($30B) and SoftBank ($30B); Block (Jack Dorsey) cutting ~40% of staff; Koah raising $20.5M Series A and the author’s “Sloppening” thesis on AI feature monetization and inference cost pressures. The author frames politics, inference economics, and ad-driven monetization as central industry risks and opportunities.