OpenAI, the AI giant behind ChatGPT, is rolling out ads to its users in a bid to bolster revenue. The company will be testing banner ads at the bottom of chatbot responses for logged-in users of both the free version and the new $8/month ChatGPT Go plan.
The move comes as OpenAI grapples with financial pressures. According to estimates, the company expects to burn through about $9 billion this year while generating $13 billion in revenue. The lackluster subscription uptake, with only 5 percent of users paying for services, is a significant concern. To address this, OpenAI has decided to diversify its revenue streams by incorporating ads into ChatGPT.
However, the company's CEO, Sam Altman, had previously expressed concerns about advertising in ChatGPT, describing it as a "last resort." Nevertheless, Fidji Simo, OpenAI's CEO of applications, believes that having a diverse revenue model where ads can play a part will make intelligence more accessible to everyone.
To mitigate potential backlash from users, OpenAI plans to place ads at the bottom of answers separated from the conversation history. The company will also ensure that its conversational responses remain uninfluenced by advertisers and will not show ads on sensitive topics such as mental health and politics to users under 18.
While some critics have expressed skepticism about the effectiveness of this approach, OpenAI appears to be taking a cautious middle ground between addressing its financial needs and maintaining user trust. The company has stated that it prioritizes preserving what makes ChatGPT valuable in the first place β trustworthy responses driven by objectively useful content β over advertising pressures.
This move highlights the evolving landscape of AI-powered services and their growing reliance on revenue diversification. As more companies seek to monetize their chatbot and AI capabilities, the debate around advertising's impact on user trust and experience will continue to gain traction.
The move comes as OpenAI grapples with financial pressures. According to estimates, the company expects to burn through about $9 billion this year while generating $13 billion in revenue. The lackluster subscription uptake, with only 5 percent of users paying for services, is a significant concern. To address this, OpenAI has decided to diversify its revenue streams by incorporating ads into ChatGPT.
However, the company's CEO, Sam Altman, had previously expressed concerns about advertising in ChatGPT, describing it as a "last resort." Nevertheless, Fidji Simo, OpenAI's CEO of applications, believes that having a diverse revenue model where ads can play a part will make intelligence more accessible to everyone.
To mitigate potential backlash from users, OpenAI plans to place ads at the bottom of answers separated from the conversation history. The company will also ensure that its conversational responses remain uninfluenced by advertisers and will not show ads on sensitive topics such as mental health and politics to users under 18.
While some critics have expressed skepticism about the effectiveness of this approach, OpenAI appears to be taking a cautious middle ground between addressing its financial needs and maintaining user trust. The company has stated that it prioritizes preserving what makes ChatGPT valuable in the first place β trustworthy responses driven by objectively useful content β over advertising pressures.
This move highlights the evolving landscape of AI-powered services and their growing reliance on revenue diversification. As more companies seek to monetize their chatbot and AI capabilities, the debate around advertising's impact on user trust and experience will continue to gain traction.