OpenAI Reportedly Considering Showing Ads on ChatGPT in a Bid to Boost Revenue

OpenAI’s Sarah Friar reportedly said that the AI firm was looking at showing ads as a revenue option.

Written by Akash Dutta, Edited by Siddharth Suvarna | Updated: 4 December 2024 16:26 IST

OpenAI Reportedly Considering Showing Ads on ChatGPT in a Bid to Boost Revenue

Photo Credit: Unsplash/Levart_Photographer

An earlier report claimed that OpenAI could hike the subscription price of ChatGPT

Highlights

OpenAI currently does not show ads on even the free tier of ChatGPT
Recently, Perplexity began showing ads to users in the US
Google also took the ad route with its AI Overviews

OpenAI is reportedly looking at ads as a way to create a new revenue source. As per a report, the AI firm is considering showing ads on ChatGPT, the company's AI-powered chatbot platform. However, it is said that there is no decision on when or how these ads could be displayed. One speculation is that the ads could be shown to the free users of ChatGPT, however, the company could also take a route similar to Perplexity, which is testing showing ads to all users.

Ads on ChatGPT

According to a Financial Times report, the AI firm is looking at ads on ChatGPT as a viable option to generate a boost to its revenue. Sarah Friar, the Chief Financial Officer of OpenAI, told the publication in an interview that the company was considering creating an ad-based revenue model, but also added that the idea was to be “thoughtful about when and where we implement them.”

The report added that Friar also issued a statement after the interview where the CFO highlighted that OpenAI's existing business models were witnessing accelerated growth and the focus was to tap into the opportunities within them. “While we're open to exploring other revenue streams in the future, we have no active plans to pursue advertising,” Friar told the Financial Times.

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Despite contradicting comments on the topic, the CFO did not outright rule out the decision to show ads on ChatGPT in the future. The report also claimed, citing unnamed people familiar with the matter, that OpenAI has been hiring people specialising in advertising from rivals such as Meta and Google.

Ad-based revenue models are also easy to deploy and earn from. Recently, Perplexity has also been testing showing ads on its platform as sponsored content. While the project is in its pilot phase and is only shown in the US, it is likely to be expanded to other regions. Google has also began showing ads on AI Overviews, the AI-generated summaries that show on its Search platform.

However, OpenAI has also been exploring other avenues to generate revenue. Earlier this year, it partnered with Apple to integrate ChatGPT with the tech giant's operating systems. The AI firm has also recently launched its AI-powered search engine and is reportedly planning to release AI agents and the Sora video model.

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Further reading: OpenAI, ChatGPT, AI, Artificial Intelligence, Enterprise

Akash Dutta Email Akash Dutta

Akash Dutta is a Senior Sub Editor at Gadgets 360. He is particularly interested in the social impact of technological developments and loves reading about emerging fields such as AI, metaverse, and fediverse. In his free time, he can be seen supporting his favourite football club - Chelsea, watching movies and anime, and sharing passionate opinions on food. More