The Stack: Big Moves in AI and Advertising
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The Stack: Big Moves in AI and Advertising
"Perplexity AI has pulled back from advertising, citing concerns that sponsored content could erode user trust. Executives confirmed the phaseout, arguing that confidence in the chatbot's answers is essential to maintain engagement and subscription revenue. Meanwhile, Meta doubled down on AI infrastructure, signing a multiyear, multibillion-dollar deal with Nvidia to purchase millions of advanced chips. The agreement reinforces Nvidia's dominance in the AI data centre market and follows Meta CEO Mark Zuckerberg's plan to nearly double the company's AI capabilities."
"Global expansion continues in advertising networks, with the Alliance of Independent Agencies formally launching its Middle East chapter, featuring 23 founding member agencies. The initiative aims to provide independent agencies with a collaborative platform for growth and knowledge-sharing. Consumer engagement metrics delivered mixed signals. In-game advertising during this year's Six Nations drove online engagement uplifts 13% for Samsung and 18% for Virgin Atlantic but research from Quantcast shows audiences remain sceptical of the format."
Omnicom posted a USD$941m Q4 loss following its IPG deal, reflecting significant financial impact. WPP launched a new advertising intelligence framework to improve campaign measurement and insights. YouTube became the UK's leading living-room screen, shifting viewing patterns. Perplexity AI withdrew from advertising to prevent sponsored content from undermining user trust and subscription revenue. Meta signed a multiyear, multibillion-dollar deal with Nvidia to buy millions of advanced chips and expand AI capabilities. Ad Net Zero Young Leaders urged immediate climate action and balanced commercial with environmental priorities. The Alliance of Independent Agencies launched a Middle East chapter with 23 founding members. In-game ads showed mixed results, with uplift for some brands but audience scepticism. Alibaba's Qwen scaled rapidly, processing over 120 million orders in six days.
Read at Exchangewire
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