OpenAI to test ads in ChatGPT, hoping for more revenue

Image (c) ConsumerAffairs. OpenAI is testing ads in ChatGPT for free and low-cost users, marking a shift in its revenue strategy amid rising AI infrastructure costs.

Google uses a similar business model, though with many more ads per page

  • Ads will begin appearing for some U.S. users of ChatGPT’s free tier and a new low-cost “Go” plan

  • Higher-priced paid versions of ChatGPT will remain ad-free

  • The move marks a strategic shift as OpenAI faces massive long-term AI infrastructure costs


OpenAI will begin testing advertisements in the ChatGPT app for certain U.S. users in the coming weeks, marking a significant change for the company as it seeks to expand revenue beyond subscriptions and prepare for a potential public offering.

The ads will appear for logged-in users of the free version of ChatGPT as well as a newer, lower-cost $8-a-month “Go” plan. The Go plan launched earlier in India and is now expanding to the U.S., the company said Friday. More expensive paid tiers of ChatGPT will remain free of advertising.

A shift in OpenAI’s business model

The decision reflects OpenAI’s broader effort to diversify its revenue streams as it faces enormous costs associated with building and operating large-scale artificial intelligence systems.

OpenAI does not expect to be profitable for years and has committed to spending roughly $1.4 trillion on data centers, chips, and other infrastructure needed to support its AI ambitions. Advertising offers a way to offset some of those costs while keeping the product accessible to a large audience.

Until now, OpenAI has relied primarily on subscriptions and enterprise services. The move into advertising represents a reversal of sorts for the company and its leadership.

Chief Executive Officer Sam Altman has previously expressed skepticism about ads, describing them as a “last resort.” He has also warned that advertising could undermine trust if users believe chatbot responses are influenced by commercial interests.

Still, OpenAI now joins competitors such as Alphabet Inc.’s Google, which have begun integrating ads into AI-powered products as usage scales rapidly.

How ads will appear inside ChatGPT

At launch, OpenAI plans to test ads for sponsored products and services that appear at the bottom of relevant ChatGPT responses. The company said ads will be clearly separated from organic chatbot content.

OpenAI argues that advertising could enhance the user experience, particularly for shopping-related queries, by surfacing relevant products and services alongside AI-generated responses.

“Our enterprise and subscription businesses are already strong,” Fidji Simo, OpenAI’s CEO of applications, said in a blog post announcing the change. “We believe in having a diverse revenue model where ads can play a part in making intelligence more accessible to everyone.”

The company emphasized that the initial rollout is a test and that the ad format may change based on user feedback.

Borrowing from Big Tech’s playbook

OpenAI’s approach mirrors strategies long used by major internet companies such as Meta Platforms Inc. and Google, which subsidize free or low-cost products through targeted advertising.

ChatGPT now has more than 800 million weekly users, giving OpenAI a massive audience attractive to advertisers. Several of the company’s executives bring experience from ad-driven platforms.

Safeguards and limits on advertising

OpenAI said ads will not influence how ChatGPT answers user questions. According to the company, chatbot responses will continue to be driven by what is “objectively useful,” not by advertising relationships.

The company also said it will not share user conversations with advertisers and will avoid showing ads on sensitive topics such as mental health and politics to users it identifies as being under 18.

“As we introduce ads, it’s crucial we preserve what makes ChatGPT valuable in the first place,” Simo said. “That means you need to trust that ChatGPT’s responses are driven by what’s objectively useful, never by advertising.”

OpenAI said it plans to closely monitor user reaction during the test period and adjust the ad experience accordingly as it weighs how advertising fits into the future of ChatGPT.


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