OpenAI, the company behind the popular AI chatbot ChatGPT, is set to test advertisements within its platform in a bid to expand its customer base and generate revenue. The move marks a significant shift for the company, which just last year described advertising in ChatGPT as a "last resort" due to concerns about user trust.
As part of this effort, OpenAI will begin displaying banner ads at the bottom of answers within the free tier of ChatGPT, as well as on users who opt for the new $8 per month ChatGPT Go plan. However, users paying for premium tiers such as Plus, Pro, Business, and Enterprise will not see advertisements.
According to Fidji Simo, OpenAI's CEO of applications, the company plans to test ads by placing them "at the bottom of answers in ChatGPT when there's a relevant sponsored product or service." Ads will be labeled and separated from the answer. The goal is to preserve user trust while also making intelligence more accessible to everyone.
This move comes as OpenAI faces significant financial pressures, with the company expected to burn through $9 billion this year alone while generating $13 billion in revenue. While some are skeptical about the effectiveness of advertising as a means of solving these financial woes, others see it as an opportunity to diversify revenue streams.
The decision is also notable for its apparent reversal from CEO Sam Altman's earlier stance on advertising in ChatGPT. In 2024, Altman expressed concerns that ads could erode user trust and hinted at the possibility of not wanting sponsored content to appear directly within the chatbot's responses. However, by introducing banner ads at the bottom of answers, OpenAI appears to be addressing these concerns while still seeking to generate revenue.
OpenAI is not the only AI company exploring advertising revenue, with Google beginning to test AdSense ads in chatbot experiences through partnerships with AI startups last year. Nevertheless, this move marks a significant step for OpenAI as it seeks to balance its commitment to user trust with the need to generate revenue and sustain its operations.
As part of this effort, OpenAI will begin displaying banner ads at the bottom of answers within the free tier of ChatGPT, as well as on users who opt for the new $8 per month ChatGPT Go plan. However, users paying for premium tiers such as Plus, Pro, Business, and Enterprise will not see advertisements.
According to Fidji Simo, OpenAI's CEO of applications, the company plans to test ads by placing them "at the bottom of answers in ChatGPT when there's a relevant sponsored product or service." Ads will be labeled and separated from the answer. The goal is to preserve user trust while also making intelligence more accessible to everyone.
This move comes as OpenAI faces significant financial pressures, with the company expected to burn through $9 billion this year alone while generating $13 billion in revenue. While some are skeptical about the effectiveness of advertising as a means of solving these financial woes, others see it as an opportunity to diversify revenue streams.
The decision is also notable for its apparent reversal from CEO Sam Altman's earlier stance on advertising in ChatGPT. In 2024, Altman expressed concerns that ads could erode user trust and hinted at the possibility of not wanting sponsored content to appear directly within the chatbot's responses. However, by introducing banner ads at the bottom of answers, OpenAI appears to be addressing these concerns while still seeking to generate revenue.
OpenAI is not the only AI company exploring advertising revenue, with Google beginning to test AdSense ads in chatbot experiences through partnerships with AI startups last year. Nevertheless, this move marks a significant step for OpenAI as it seeks to balance its commitment to user trust with the need to generate revenue and sustain its operations.