ChatGPT's free ride is ending: OpenAI plans for advertising on the chatbot
The company, valued at $500 billion, currently spends more on operations than it earns.
OpenAI announced Friday that it will begin showing advertisements to users of the free version of ChatGPT in the coming weeks, part of the company's effort to generate revenue from its over 800 million users.
The ads will appear at the bottom of ChatGPT's responses when relevant to the ongoing conversation and will be clearly labeled and separated from the AI's answers. CEO Fidji Simo emphasized that the ads will not influence ChatGPT's responses.
The company, valued at $500 billion, currently spends more on operations than it earns. Paid subscriptions cover some costs, but OpenAI faces over $1 trillion in obligations for chips, servers, and data centers that power its AI services.
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OpenAI framed the advertising move as consistent with its mission to ensure AI benefits humanity, even as experts warn of potential risks. Miranda Bogen of the Center for Democracy and Technology noted that introducing personalized ads could erode trust, since users often rely on chatbots for advice and companionship.
OpenAI claims it will not use personal data or chat prompts for ad targeting, though analysts caution about the long-term implications. Paddy Harrington of Forrester said, "Free services are never actually free… if the service is free, you're the product."
The rollout will position OpenAI alongside competitors like Google and Meta, who already incorporate ads into AI-driven services. A formal testing phase for the ads is expected in the coming weeks, as OpenAI explores new ways to monetize its popular chatbot while maintaining user trust.
