ChatGPT With Ads? OpenAI Explores New Business Model to Cover Its High Costs

ChatGPT’s minimalist style is part of its appeal. Invasive ads do not crowd out your queries, but that might change as OpenAI looks to generate more revenue.

The company is considering an ad-based model, OpenAI CFO Sarah Friar told the Financial Times. But she stressed that the company will be “thoughtful about when and where we implement” the ads. Perhaps fearing backlash, Friar issued a statement after the interview: “While we’re open to exploring other revenue streams in the future, we have no active plans to pursue advertising.”

OpenAI mainly earns money through its paid ChatGPT Plus tier and its API, which lets third-party developers build apps around the company’s AI products. But despite a projected $3.7 billion in sales for 2024, OpenAI might burn through an estimated $5 billion in cash this year thanks to server costs and paying the hefty salaries of its employees.

The company is also restructuring to become a for-profit company and venturing into online search. The FT adds that OpenAI has hired advertising talent from top tech firms, including Meta and Google. So it may only be a matter of time before ads debut on ChatGPT. 

On the downside, any expansion into ads will raise questions about privacy since companies often collect and mine user details to power targeted advertising. In the meantime, Friar added in her statement: “Our current business is experiencing rapid growth, and we see significant opportunities within our existing business model.”