OpenAI Might Soon Introduce Ads On ChatGPT
Heavy emphasis on 'might'.
By Sukhbir Cheema — 06 Dec 2024, 03:02 PM
OpenAI, the company behind ChatGPT, might explore advertising as a future revenue stream — or so it seems
OpenAI Chief Financial Officer Sarah Friar recently hinted at the possibility during an interview with the Financial Times, saying the company plans to be "thoughtful about when and where" ads could appear.
However, she later clarified that OpenAI has "no active plans" for ads, echoing earlier statements the company made during the launch of ChatGPT Search in October.
OpenAI's recent moves suggest it's gearing up for significant monetisation efforts
The company has made notable high-profile hires, including Shivakumar Venkataraman, who worked on Google Search's advertising; Kevin Weil, a former Instagram executive; and Kate Rouch, who joined this week as Chief Marketing Officer after overseeing Coinbase's high-profile Super Bowl ads.
Why the push? OpenAI is under pressure to turn massive investments into profit.
Despite a recent USD6 billion funding round that values the company at USD150 billion, it operates at a staggering USD2.3 billion annual loss. Revenue is projected to hit USD11.6 billion by 2025, but achieving this requires tripling current income, a feat unlikely to be met solely by increasing premium subscriptions.
Introducing ads might seem like an obvious solution, but it's a risky one
Ads could disrupt user experience and alienate its loyal base — especially in a market crowded with competitors like Anthropic and Google Gemini.
OpenAI may find itself walking a tightrope, balancing profitability against maintaining the quality and trust that have made ChatGPT a leader in generative AI.
Whether ads make it into ChatGPT remains to be seen. For now, OpenAI appears to be playing the long game, leaving users and investors to speculate on how it will navigate its financial challenges.
