To offset rising operating costs, OpenAI has announced plans to begin showing ads to free and lower-tier ChatGPT users in the United States. Premium Pro and Enterprise subscribers will continue to use the platform ad-free.
According to reports, the move comes as OpenAI faces the high cost of running AI systems. Despite nearly one billion users, only a small fraction pay for subscriptions, prompting the company to explore new revenue streams. Since ChatGPT’s 2022 launch, OpenAI’s valuation has grown to $500 billion, and analysts suggest it could reach $1 trillion if it goes public.
OpenAI’s CEO of Applications and former Meta executive, Fidji Simo, emphasized, “As we introduce ads, it’s crucial we preserve what makes ChatGPT valuable. Responses are driven by usefulness, never by advertising”.
Introducing ads aligns OpenAI with tech giants like Google, Meta, and Amazon, which rely on advertising to fund free services and AI development. “Ads aren’t a distraction from the gen AI race; they’re how OpenAI stays in it”, said Emarketer analyst, Jeremy Goldman.
OpenAI said ads will not affect ChatGPT’s responses, and user conversations will not be shared with advertisers. “Answers are optimized based on what’s most helpful to you. Ads are always separate and clearly labeled”, the company said.
OpenAI’s CEO of Applications and former Meta executive, Fidji Simo, emphasized, “As we introduce ads, it’s crucial we preserve what makes ChatGPT valuable. Responses are driven by usefulness, never by advertising”.
The announcement comes amid rising competition, with Google expanding AI across Gmail, Maps, YouTube, and its Gemini chatbot.
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