OpenAI, the artificial intelligence powerhouse behind ChatGPT valued at $150 billion, is weighing the possibility of introducing advertisements into its AI products, though the company maintains a careful stance on implementation timing.
In recent statements to the Financial Times, OpenAI's CFO Sarah Friar indicated the company would take a measured approach to any potential ad integration. However, she later clarified there are no immediate plans to pursue advertising.
The company has made strategic personnel moves that suggest preparation for advertising capabilities. Recent hires include former Google search advertising head Shivakumar Venkataraman as vice president, and Kevin Weil as chief product officer, who brings valuable experience from leading Instagram's advertising platform.
Financial pressures may be driving these considerations. OpenAI's operational costs are projected to surpass $5 billion annually, primarily due to the resource-intensive nature of training and running AI systems like ChatGPT, which serves over 250 million weekly active users. Current revenue streams, including subscriptions and API services, generate around $4 billion yearly but with narrow profit margins.
CEO Sam Altman has previously expressed skepticism about advertising, stating during a Harvard Business School discussion that it would be a "last resort" and noting particular concerns about the combination of ads and AI. However, mounting operational costs may force a reevaluation of this position.
The AI industry is already seeing movement toward ad-supported models, with competitor Perplexity testing advertising features. Within OpenAI, views on advertising remain mixed - some executives see it as an inevitable step for growth, while others worry about its impact on user experience and business independence.
For the present, OpenAI continues to focus on expanding its subscription services and partnerships while carefully evaluating its long-term revenue strategy.