Gravity raised $30.5M to place ads in AI chatbots, now targets bots themselves
The startup's next product focuses on agent-to-agent advertising unseen by humans
1Gravity's funding and ad model
Gravity secured a $30.5 million Series A round co-led by Lightspeed Venture Partners and Committed Capital, bringing total funding to $38.5 million. The company operates a full-stack ad platform comprising a demand-side platform for buying ads in AI chatbots, a supply-side platform for developers to monetize AI apps, and an exchange connecting both. Major advertisers like Best Buy, Target, Vercel, and MongoDB are already using Gravity's services.
2Ad placements in AI assistants
Currently, Gravity places text-based ads in ChatGPT and several other AI assistants including Codebuff, EcoGPT, Daimon, Magneta, Runable, and CTO.new. OpenAI switched ChatGPT's ad model to cost-per-click in April and is building its own ad platform with partners like Adobe and Criteo. Gravity aims to differentiate by working across multiple AI platforms rather than being tied to one.
3Agent-to-agent advertising
Gravity's most innovative product is agent-to-agent advertising, where ads are exchanged between AI systems without human visibility. Advertisers provide product catalogs with features and promotions to Gravity. When an AI shopping agent searches for products, it receives detailed listings from relevant advertisers. Co-founder Zach Oldham states this system enriches purchase decisions. Gravity plans to integrate direct payments for seamless transactions.
4Market size and projections
WPP Media estimates marketers will spend $100 billion annually on ads within generative AI search by 2030. OpenAI alone forecasts its ad business reaching $100 billion the same year. ChatGPT introduced ads in February and achieved $100 million in annualized ad revenue within two months. Oldham believes even these projections might be conservative given the rapid adoption of AI technologies.
5Competitive landscape
Gravity faces significant challenges competing against Google's dominant ad business and OpenAI's in-development platform. Oldham argues that controlling both sides of transactions (buyers and sellers) makes Gravity's network smarter with each ad placement. This unique position could help the independent platform compete with tech giants in the emerging AI advertising space.
6Technology and infrastructure
Gravity's full-stack ad platform offers specialized infrastructure for AI chatbots. The demand-side platform provides targeting and optimization tools for advertisers, while the supply-side platform enables developers to monetize AI applications. The exchange efficiently matches both parties. This integrated approach enhances the platform's scalability and performance in the growing AI advertising market.
7Client portfolio and early success
Gravity has successfully onboarded major brands like Best Buy, Target, Vercel, and MongoDB as early clients. This traction demonstrates the platform's potential in the AI advertising space. Strong demand from e-commerce and technology sectors validates Gravity's business model. The company continues expanding into additional industries to diversify its advertiser base.
8The future of AI advertising
Gravity's progress highlights the rapid growth of AI advertising. Unlike traditional models, AI-powered systems deliver personalized, contextual ad experiences. Innovative approaches like agent-to-agent advertising could fundamentally transform consumer behavior. As a pioneer in this space, Gravity is well-positioned to shape the future of digital advertising through its cutting-edge solutions.