> couple of companies are already executing in these areas and have amassed loyal followings

What companies are there in the interactive literotica space?

I was curious about building something like this myself (before people dismiss this as a dumb idea, they should check out what the best selling books on Kindle are).

Fiction.live is going to be huge in this area, they can leverage their existing content and writers to get incremental results.

Since the technology is in its early days the writers can manually improve the generated results to get it to be useful quality, and this will tide the whole system over until perfect completely-AI results are here, guessing sometime towards the end of the year.

seems Microsoft was trying:

https://www.nytimes.com/2015/08/04/science/for-sympathetic-e...

Well, the simplest of 'literotica' is just an uncensored, fiction-writing friendly LLM (Fine tuned on fiction/RP, rather than truthful and friendly responses).

NovelAI has been around for a long time, after AI dungeon died in flames. They sell exactly that. They also did the first powerful fine-tune of SD. Now they've got a H100 cluster, and are committed to training a GPT3.5 equivalent.

These companies have difficulties getting investor funding, the good side is however, AI products are so useful, users have an extremely high intention to pay. So these no-investor companies can pure bootstrap themselves with high profitability and high growth.

Are investors disinterested in NovelAI, or are they just choosing to bootstrap?

Based purely on interactions with ChatGPT, interactive fiction isn't really there yet. ChatGPT is not able to tell a cohesive interactive story, because it doesn't understand what's going on. Just for one example, it forgets who is where, and has characters who are not present ("wait in the car") participate in dialogue.

I'm not sure if this is something that can be iterated on, or if it's a fundamental characteristic of large language models.

I don't know; AI Dungeon was quite good for interactive fiction and role-play, and that was in GPT-2 and early GPT-3 era.

this is being addressed as a priority, it's a lack of long term memory, you can improve results by repeating key facts during the conversation, stating the same request in different ways and by asking it to summarise unique elements of the conversation so far, then start a new conversation with the 'compressed' conversation, this helps preserve memory, or context might be a better word, imagine blowing a balloon in an nth dimensional topological manifold, your balloon is inside the big balloon that is AI, at the edges of the balloon are 'understandings' that have been established, you have to keep blowing...

Porn already is huge? In terms of reach, but money compared to other industries is rather small. Video Games for example are 20x-50x bigger then Porn. If anything GenAI means there's gonna be even less money in it.

Ok so, but GenAI interactive literotica companies with loyal followings you say? When's the IPO going to be exactly?

When will we get good AI quests and characters in video games? To me, this is one of the most exciting aspects of AI. I can imagine a very cool future where the dialog isn’t written, each character is just given a “this is your motivation” prompt like an actor might get. The replayability factor will be huge.

Companies are of course experimenting with this. And the mod communities are working on projects too.

A Fallout 4 mod is using AI to voice human written options in the same voices as existing characters. And there's a couple Skyrim projects working on dialogue generation. Personally I expect this to be an area where amateurs/hobbyists contribute quite a bit of research.

> Video Games for example are 20x-50x bigger then Porn.

I wonder how these two can be compared. Adult entertainment often resides in the dark economy.

It's an estimate. You can come up with different values, but I think no one would really argue porn is that huge of a slice of the pie. Clean money is also a lot more valueable than dark money.

Generative porn will be a big thing, but won't magically lead to more money flowing into the industry. If anything, less.

What's gonna happen is, synthetic porn will replace real porn over time, that's pretty much it. All things considered, biggest beneficiary gotta be the women currently working in the industry, no doubt.

This got me curious. Currently the global market cap for video games is somewhere around $188B. From a cursory Google search, the revenue from alcohol sales worldwide is 10x that of video games.

Seems like a crazy gap for adult entertainment!