OpenAI Begins Testing Targeted Ads in ChatGPT App

OpenAI will start testing advertisements in the ChatGPT app for certain U.S. users, marking a major shift for the company as it seeks to bolster revenue from the popular chatbot. The ads will appear in the coming weeks for logged-in users of the free version of ChatGPT as well as a newer, lower-cost $8-a-month “Go” plan that first launched in India and is now expanding to the U.S., the company said Friday. The more expensive paid tiers of ChatGPT will remain free of ads. OpenAI’s decision to embrace advertising reflects a broader push to diversify its revenue ahead of a potential initial public offering and to help offset the immense cost of building and supporting artificial intelligence systems. OpenAI, which does not expect to be profitable for years, has committed to spend about $1.4 trillion on data centers and chips for AI. The move represents a reversal of sorts for the company, which has primarily relied on a subscription model. Chief Executive Sam Altman had previously expressed his personal distaste for advertising, framing it as a “last resort.” Altman had cited concerns that users might not trust a chatbot as much if they think it’s selling products. Other rivals such as Alphabet Inc.’s Google have also begun introducing ads into AI products. To start, OpenAI plans to test advertising for sponsored products and services at the bottom of relevant responses in ChatGPT and to clearly separate the ads from the rest of the chat. The company said it believes ads could help users make better shopping decisions using the chatbot. “Our enterprise and subscription businesses are already strong,” Fidji Simo, OpenAI’s CEO of applications, said in a blog post. “We believe in having a diverse revenue model where ads can play a part in making intelligence more accessible to everyone.” OpenAI is tapping a playbook used by other large internet firms, including Meta Platforms Inc. and Google, to subsidize the cost of their products by selling targeted ads to a large audience. The ChatGPT maker currently has more than 800 million weekly users. Several of its executives previously worked at social media firms, including Simo, who helped grow the Facebook app’s advertising business before taking over as CEO of Instacart. In the blog post, Simo said OpenAI’s ads will not influence the answers that ChatGPT gives to users. The company said it also will not share conversations with advertisers, nor will it show ads on sensitive topics such as mental health and politics to users it determines to be under 18. OpenAI also said it may adapt the ad product based on initial feedback. “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.”