OpenAI Considers Ads for Free-tier ChatGPT Users

ChatGPT, the popular AI model from OpenAI, has made a significant impact, being widely used across various sectors. Currently, the free version remains ad-free, but OpenAI is now exploring the possibility of introducing ads for free-tier users.

In a recent report from the Financial Times, CFO Sarah Friar revealed that the company is considering an ad-supported model, although the exact details of ad placement are still being carefully evaluated.

The initiative to introduce advertisements arises as OpenAI endeavors to enhance its revenue in order to mitigate the substantial operational expenses associated with the management of AI servers. The company, which holds a valuation of $150 billion, is reportedly allocating approximately $5 billion this year exclusively for artificial intelligence training. While Friar recognized the potential benefits of advertisements, she underscored the necessity of addressing several concerns prior to proceeding with that initiative.

Although no immediate plans for ad implementation have been confirmed, the discussions within the company are ongoing. The report additionally highlighted OpenAI’s recent recruitment of Shivakumar Venkataraman, a former executive at Google, who possesses considerable expertise in the field of advertising. This development has prompted heightened speculation regarding OpenAI’s potential transition to an advertising-based revenue model.

OpenAI has primarily relied on subscription revenues to finance the advancement of its generative artificial intelligence tools. However, as the expenses associated with the development and maintenance of these models escalate, the company is investigating alternative avenues for revenue generation.

Despite this, Sam Altman, the founder of OpenAI, has articulated a sense of caution, characterizing advertisements as a “last resort” and emphasizing apprehensions regarding the possible adverse consequences of merging advertisements with artificial intelligence.