OpenAI to test showing ads in ChatGPT in bid to boost revenue

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The ads on ChatGPT will be tested with users on the company’s free tier and the lower-priced Go plan.

The ads on ChatGPT will be tested with users on the company’s free tier and the lower-priced Go plan.

PHOTO: AFP

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- OpenAI said it would start showing advertisements in ChatGPT to some US users, ramping up efforts to generate revenue from the artificial intelligence (AI) chatbot to fund the high costs of developing the technology.

The ads will be tested with users on the company’s free tier and the lower-priced Go plan that it is now expanding globally, OpenAI said on Jan 16. The ads will show up in the coming weeks, and will be separate from the answers generated by ChatGPT.

Users on the more expensive Plus, Pro, Business and Enterprise tiers will not have ads. OpenAI also said that advertising would not influence ChatGPT’s outputs, and that user conversations would not be shared with marketers.

The move marks a major departure for the company, which had so far relied on subscriptions. It shows the pressure OpenAI faces to increase revenue as it spends heavily on data centres and prepares for a widely anticipated initial public offering.

The money-losing start-up plans to spend more than US$1 trillion (S$1.29 trillion) on AI infrastructure by 2030, but has not given details on how it plans to fund it.

Analysts said ads could unlock a significant revenue stream from ChatGPT’s 800 million weekly active users, but the move could irk some customers and hurt trust in the product. If the ads feel clumsy or opportunistic, users can easily switch to rival chatbots such as Google’s Gemini or Anthropic’s Claude, said eMarketer analyst Jeremy Goldman.

But he added that the move could also pressure rivals “to clarify their own monetisation philosophies, especially those positioning themselves as ‘ad-free by design’”.

OpenAI said it would not show ads to users under 18. The company also plans to block ads from appearing in relation to sensitive topics, such as health and politics.

“We plan to test ads at the bottom of answers in ChatGPT when there’s a relevant sponsored product or service based on your current conversation,” the start-up said in a statement.

Advertisers are optimistic that AI will improve performance in search and social advertising buckets, as they look to capitalise on the implementation of the technology into advertising recommendation systems.

The ChatGPT Go offering, first launched in India, will be available in the US for US$8 per month, the Microsoft-backed company said. REUTERS

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