747 AdTech startup Nexad has raised $6 million in seed funding led by Andreessen Horowitz to embed native advertising in AI chat applications, targeting contextual integrations during chat flows  . The platform partners with AI apps like iAsk and Dippy AI, reaching ~30 million users. It generates real-time, contextual ads while excluding video formats to maintain chat flow and uses model signals from LLaMA through OpenAI APIs. Nexad’s “flywheel” model refines ad targeting based on user prompts and clicking behavior. They monetize via PPC and pay-per-purchase, connecting with e-commerce partners at scale. This marks a pivotal moment in ad technology: moving ads from search and feeds into conversation spaces—where user intent is explicit. Nexad joins other AI-native ad plays like OpenAds and ProRata. Nexad’s seed round highlights early investor confidence in AI-native ads. As chatbots become daily tools, embedding relevant, real-time ads may reshape digital marketing’s reach and ROI. You Might Be Interested In Meta set to overtake Google in digital ad revenue for the first time Marketers race ahead with AI, but consumer trust falls behind Sora’s first-week downloads rival ChatGPT’s iOS launch OpenAI introduces new metrics to measure political bias in AI models Adobe AI Agents Revolutionize Brand Campaigns Sundar Pichai hails Google’s first $100 billion quarter as AI drives record growth
