VC Says ‘Chaos’ Coming for Startups, Ads and Online Business as Generative AI Eats Web

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If the web is an infrastructure built on paying and optimizing for referred traffic, what happens when that’s diminished?

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Disruption of the internet (Image generated by AI)

As generative AI products ingest more of the web — via deals like OpenAI’s with Vox and The Atlantic this week — the impact could be felt well beyond news publishers.

“Chaos” is en route for the broader online economy, VC Joe Marchese of Human Ventures texted me this week, with the technology poised to reshape a decades-old system of online referrals and business building.

Marchese sold his ad tech firm, TrueX, to 21st Century Fox, and ran advanced advertising at Fox Networks for years, so he knows the system better than most. After his “chaos” text, I called him up to ask him what he meant.

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