OpenAI plans ads in ChatGPT as company eyes IPO

OpenAI said on Friday it will begin rolling out ads in ChatGPT to some US users, as the company aims to generate more revenue ahead of its highly anticipated initial public offering.

The company said it plans to start testing ads in the coming weeks in the US for users in the free and lower-priced Go tiers, while its Plus, Pro, Business and Enterprise subscriptions will not include ads.

“We plan to test ads below answers in ChatGPT when there is a related sponsored product or service based on your current conversation,” OpenAI said in a statement.

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The ads will be “clearly labeled” and separated from ChatGPT answers, the company said, adding that users will be able to see why they’re seeing certain ads and reject them.

The company stated that ads will not be shown in accounts where the user is under 18 years old, and cannot appear near sensitive or regulated topics such as health, mental health, or politics.

OpenAI said its ads will not influence the answers ChatGPT provides to users, and conversations will remain private from advertisers.

“We never sell your data to advertisers,” the company said, adding that users can turn off its personalization feature. “We will always offer a way to avoid ads in ChatGPT, including an ad-free paid tier.”

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OpenAI said on Friday that it will begin rolling out ads in ChatGPT to some users in the United States. (Nicholas Kokovelis/Noor Photo via Getty Images/Getty Images)

OpenAI has largely relied on subscriptions for revenue but can generate significant advertising income from ChatGPT’s estimated 800 million weekly active users. The company plans to spend more than $1 trillion on AI infrastructure by 2030, but has not said how it will cover the costs, according to Reuters.

Users could choose to switch to competing chatbots, Emarketer analyst Jeremy Goldman told Reuters, adding that OpenAI’s move could prompt rivals “to clarify their monetization philosophies, especially those that position themselves as ‘ad-free by design’.”

OpenAI said in its statement that it will learn from feedback and improve its ads over time, ensuring that its “commitment to putting users first and maintaining trust remains unchanged.”

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OpenAI has announced plans to roll out ads in ChatGPT for free and lower-tier users. (Lionel Bonaventure/AFP via Getty Images/Getty Images)

“Our long-term focus remains on building products that millions of people and businesses find valuable enough to pay for,” the company said. “Our commerce and subscription businesses are already strong, and we believe in a diversified revenue model where advertising can play a role in making intelligence accessible to everyone.”

Reuters contributed to this report.