Major AI Shift: OpenAI Launches Ads & Meta Unveils 'Avocado' Model | January 21, 2026

Daily AI Blog

📋 Quick Takeaways

  • OpenAI officially introduces advertising to its chatbot interface, marking a pivotal shift in its revenue strategy beyond subscriptions.
  • Meta CTO Andrew Bosworth confirms the internal delivery of new “Avocado” (text) and “Mango” (media) models from their Superintelligence Labs.
  • Google DeepMind CEO Demis Hassabis tells Davos that Chinese AI firms are trailing US frontier models by approximately six months.
  • Microsoft CEO Satya Nadella identifies “energy costs” as the primary deciding factor in the global AI race.
  • Nvidia invests $150M in Baseten as part of a $300M round, valuing the inference startup at $5 billion.
  • ServiceNow and Schneider Electric double down on “Agentic AI” to automate complex enterprise and energy workflows.

💰 Business Models & Frontier Models

OpenAI Begins Offering Chatbot Ads to Advertisers

Revenue Pivot: In a report surfacing Tuesday, The Information confirmed that OpenAI has officially begun offering “chatbot ads” to dozens of advertisers. This marks a historic shift in OpenAI’s business model, moving from a purely subscription/API focus to an ad-supported ecosystem directly within its conversational interfaces. Industry Impact: This move challenges traditional search advertising dominance and introduces a new battleground for commercial attention within AI responses. Source: Radical Data Science

Meta’s New AI Team Delivers First Key Models Internally

Roadmap Milestone: Speaking at Davos, Meta CTO Andrew Bosworth confirmed that the company’s newly formed “Meta Superintelligence Labs” has delivered its first set of high-profile models for internal testing. The Models:

  • “Avocado”: A new advanced text model.
  • “Mango”: A next-generation media/multimodal model. Strategic Context: These releases signal that Meta is maintaining its aggressive pace in 2026 to compete with proprietary frontiers. Source: US News

🌍 Geopolitics & The “Davos” Narrative

Google DeepMind CEO: Chinese AI is “Six Months Behind”

The Gap: Google DeepMind CEO Demis Hassabis, speaking at the World Economic Forum (Davos), assessed that Chinese AI firms are currently about six months behind US frontier models. Nuance: While indicating a lead for the West, Hassabis noted the gap is “ongoing” and competitive, highlighting the rapid catch-up capabilities of Chinese tech giants. Conversely, the WEF announced that nearly half of its new “AI Solutions Stars” (MINDS) are from China, underscoring China’s strength in application and industrial deployment. Source: YouTube | People’s Daily

G42 Secures Export License for Advanced Nvidia Chips

Trade Thaw: Peng Xiao, CEO of UAE-based G42, confirmed at Davos that the firm has secured export licenses for advanced Nvidia chips. Shipments are expected in the coming months, signaling a significant easing of US-UAE tech trade restrictions regarding AI hardware. Source: YouTube

Satya Nadella Highlights “Energy Intelligence”

The New Currency: Microsoft CEO Satya Nadella emphasized at Davos that “energy costs” will be the ultimate deciding factor in which nations win the AI race. He also championed the shift toward “autonomous AI agents” that amplify human agency rather than replacing it. Source: CNBC | YouTube

🏢 Enterprise Adoption & Infrastructure

Nvidia Invests in Baseten’s $300 Million Round

Inference Unicorn: AI inference startup Baseten has raised $300 million at a $5 billion valuation. Nvidia led the charge with a $150 million contribution, reinforcing its strategy of funding the infrastructure layer that makes running generative AI efficient and scalable. Source: WSJ

ServiceNow Inks Deal with OpenAI

Workflow Automation: On January 20, enterprise giant ServiceNow announced a new partnership with OpenAI to integrate advanced generative capabilities into its workflow automation stack, aiming to move beyond simple chatbots to complex task execution. Source: CNBC

🤖 The Rise of “Agentic AI”

Schneider Electric & GeneralMind Pivot to Agents

Industrial Agents: Schneider Electric CEO Olivier Blum revealed a focus on “agentic AI” to create a “data cube” for intelligent energy management, targeting 7-10% annual savings for clients. ERP Automation: Simultaneously, Berlin-based GeneralMind raised €10.2M to build an “autonomous AI layer” specifically for Enterprise Resource Planning (ERP) systems, automating white-collar workflows. Trend: Both announcements confirm the 2026 market shift from “generative” content creation to “agentic” task execution. Source: Fortune | The AI Insider

🛡️ Safety & Regulation

OpenAI Exec Warns of “Capability Overhang”

Safety Gap: Chris Lehane, OpenAI’s Chief Global Affairs Officer, warned Davos attendees of a “capability overhang”—the dangerous gap between raw AI power and society’s ability to harness it safely. He is currently pitching government officials on projects to increase global AI utility. Source: Reuters

Philippines Restores Access to Elon Musk’s Grok

Regulatory Win: The Philippines’ cybercrime unit restored access to the Grok chatbot on January 21. The ban was lifted after developers committed to removing specific image-manipulation tools that raised child safety concerns. Source: Reuters

📊 Market Impact Analysis

The news from January 20-21, 2026, driven largely by Davos revelations, points to three distinct market phases:

  1. Monetization Maturity: OpenAI’s move into advertising is a watershed moment. It signals that subscription revenue alone may not sustain the massive compute costs of frontier models, forcing AI companies into the ad-tech arena previously dominated by Google and Meta.
  2. The “Agent” Economy: From Microsoft to Schneider Electric to GeneralMind, the buzzword has shifted from “Chat” to “Agents.” The market is valuing tools that do work (inference and execution) over tools that just summarize work.
  3. The Energy Ceiling: Nadella’s comments confirm that compute availability is no longer just about chips (which G42 is now securing); it is about the cost of electricity. This will likely drive future investments into nuclear and renewable energy sources for data centers.

🔮 Looking Ahead

  • Ad-Tech Reaction: Watch for Google’s response to OpenAI’s entry into the advertising market.
  • Meta’s External Release: Expect rumors regarding when “Avocado” and “Mango” will move from internal testing to public release on Llama.
  • Energy Partnerships: Following Nadella’s comments, look for major partnerships between hyperscalers and energy providers in Q1 2026.

Last Updated: January 21, 2026, 2:30 PM EST