OpenAI will begin testing ChatGPT in-app ads for some users in the United States, in an important move to bolster revenue generation from the popular chatbot.
The ads are expected to appear in the coming weeks for users logged into the free version of ChatGPT, as well as the new, lower-cost “Go” plan at $8 per month. This plan was initially launched in India and is now being expanded to the US, the company said on Friday. ChatGPT’s more expensive subscriptions will remain ad-free.
OpenAI’s decision to embrace advertising reflects a broader effort to diversify its revenue sources ahead of a potential IPO and offset the enormous cost of building and maintaining artificial intelligence systems. The company, which doesn’t expect to be profitable for a few years, has committed to spending about $1.4 trillion on data centers and AI chips.
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The movement represents a kind of turnaround for the company, which until now has relied mainly on subscription models. CEO Sam Altman had already expressed his personal discomfort with advertising, classifying it as a “last resort”. He also warned of the risk of loss of trust if users start to see the chatbot as a product seller. Rivals such as Alphabet’s Google have also begun introducing ads into AI products.
Initially, OpenAI intends to test ads for sponsored products and services displayed at the bottom of relevant responses in ChatGPT, with a clear visual separation from the rest of the conversation. The company says it believes the ads can help users make better purchasing decisions using the chatbot.
“Our enterprise and subscription businesses are already strong,” wrote Fidji Simo, CEO of applications at OpenAI, in a company blog post. “We believe in having a diversified revenue model where ads can contribute to making intelligence more accessible to everyone.”
OpenAI follows a playbook already used by large internet companies, such as Meta and Google, which subsidize the cost of their products by selling targeted ads to a large user base. The developer of ChatGPT says it has more than 800 million weekly users. Several company executives have worked on social networks before, including Simo herself, who helped expand the Facebook app’s advertising business before taking charge of Instacart.
On the blog, Simo stated that the ads will not influence ChatGPT responses. The company also says that it will not share conversations with advertisers, nor will it display advertising on sensitive topics — such as mental health and politics — to users who identify as under 18. OpenAI also indicates that it may adjust the ad product based on initial feedback from users.
“As we introduce ads, it is crucial to preserve what makes ChatGPT valuable in the first place,” said Simo. “This means you need to trust that ChatGPT’s responses are guided by what is objectively useful — never advertising.”
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