Meet the Operators Building Ads 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."