Kontext, a startup that develops artificial intelligence-powered advertising infrastructure for generative AI applications, has raised $10 million in seed funding to expand its contextual advertising platform. The company specializes in creating advertisements dynamically using large language models tailored to individual user sessions within AI chatbots and conversational interfaces. Kontext processes tens of millions of daily ad impressions and serves major consumer brands including Amazon, Uber, and Canva. The platform operates by analyzing user queries and conversation context through the same large language models powering the host application. This analysis enables the system to generate contextually relevant advertising content that appears as branded links beneath chatbot responses. Current publisher partners include DeepAI, Media Search, Pixel Chat, and Spicy Chat. The company reports average revenue per user improvements from $0.24 to $0.40 among GenAI applications implementing its advertising layer, representing a 66% increase through ad-supported monetization. Kontext faces competition from startups and established advertising technology companies, with smaller companies with limited funding and traction. Large technology companies like Google, Meta, Microsoft, and TheTradeDesk represent potential competitors, though Kontext argues these companies lack real-time ad product capabilities for third-party advertisements. The company’s team consists entirely of individuals who previously co-founded startups, with technical expertise spans artificial intelligence research, infrastructure development, and advertising technology. The company projects significant market expansion as AI-powered consumer applications achieve mainstream adoption, with major platforms including ChatGPT, Character.ai, and Perplexity representing opportunities for advertising infrastructure similar to previous platform transitions.