Billionaire entrepreneur Mark Cuban urged President Donald Trump‘s crypto advisor, David Sacks, on Saturday to ban advertising in artificial intelligence models, warning against repeating social media’s algorithmic mistakes that prioritize revenue over user experience.
What Happened: “Hey David Sacks, my one request is that we make it illegal for AI models to offer advertising,” Cuban wrote on X. “The last thing we need is to have algorithms designed to maximize revenue driving LLM output and interactions.”
Cuban’s concerns emerge as major tech companies increasingly monetize AI-powered features. Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) revealed its AI overviews achieve revenue rates matching traditional search results, generating significant returns from its $54 billion fourth-quarter search advertising revenue.
The entrepreneur specifically highlighted undisclosed commercial relationships between AI models and brands. “They are already recommending brands and we don’t know if they are getting paid for it,” Cuban noted, calling for examination of referral fees in AI systems.
Why It Matters: Google’s AI integration success contrasts sharply with Cuban’s regulatory vision. The search giant’s AI overviews now operate in over 100 countries, with Chief Business Officer Philipp Schindler reporting monetization at “approximately the same rate” as conventional search during the fourth quarter of 2024 earnings calls.
Meta Platforms Inc. (NASDAQ:META) projects generative AI revenues reaching $460 billion to $1.4 trillion by 2035, according to court filings in the Kadrey v. Meta copyright lawsuit.
CEO Mark Zuckerberg hinted at Meta AI displaying ads during the first quarter earnings calls, with the company raising 2025 capital expenditure forecasts to $64-72 billion.
Goldman Sachs analyst Eric Sheridan maintains a $220 price target on Alphabet, noting AI tools enhance rather than disrupt legacy advertising monetization.
The firm projects $326 billion in 2025 revenue for Alphabet, citing strong AI adoption across digital advertising platforms.
Cuban’s regulatory proposal faces headwinds as AI competition intensifies between Google, Meta, OpenAI, Microsoft Corp. (NASDAQ:MSFT), and China’s DeepSeek, with each platform developing sophisticated monetization strategies for their large language models.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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