the developer of , is evaluating the possibility of introducing advertising into its (AI) products as it seeks new sources of revenue following its . The information is from the newspaper Financial Times.
In an interview with the publication, Sarah Friar, financial director at OpenAI, revealed that the artificial intelligence startup valued at US$150 billion is studying an advertising model, emphasizing the need for careful implementation. With the recent raising of US$6.6 billion in funding, OpenAI has been hiring advertising talent from major technology rivals such as Meta and Google.
Read more:
Continues after advertising
Friar mentioned that while the company is open to exploring new sources of revenue in the future, there are no active plans to implement advertising at this time. OpenAI is already stepping up its efforts to generate revenue from products like its artificial intelligence-driven search engine, especially in a growing market.
OpenAI, which has become one of Silicon Valley’s most valuable private companies with a $150 billion valuation, is in the midst of restructuring as a for-profit corporation. Despite rapid growth, the company faces high costs associated with training new AI models, leading it to seek new ways to commercialize its technology.
OpenAI’s annual revenue has already reached around US$4 billion, driven by the success of ChatGPT, which has more than 250 million weekly active users.
Continues after advertising
While advertising has been a successful strategy for tech companies like Google and Meta, there are internal divisions at OpenAI over how advertising could look on its platform, according to the Financial Times.
CEO Sam Altman appears to be leaning more towards the idea, while Friar highlights that ad models can come with drawbacks, such as sensitivity to economic fluctuations and the need to balance user and advertiser expectations.
