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is this a retarded question?
no ads i can see anywhere on the site.
but the owners hope to sell it someday soon for $$$$$$$ like myspace and youtube did
open the site without ads to attract people in
then get a major advertising deal/buy out deal after about 2 - 3 years.
Sites like this usualy make a loss from these sort of ventures, but their recent deal with Microsoft for the Xbox is one of the only places I can see revenue coming from.
It started off with $55m of venture capital and has made a loss in each of the three years of its existence.
"Twitter's co-founders, Evan Williams and Biz Stone, still haven't revealed their business model, but have indicated that advertising is low on their priority list. They have suggested they might impose fees on companies interested in mining the data about consumer preferences and peeves that pour into Twitter."
See link above. Not sure how accurate it is though so you might be right.
which is a little surprising.
it is also worth noting that investors wouldn't expect something like this to be profitable for a few years. that it is starting to become profitable now is actually pretty remarkable.