OpenAI considers advertising but says no active plans yet

OpenAI is exploring introducing ads to its platforms, according to statements by its Chief Financial Officer, Sarah Friar. In an interview with the Financial Times, Friar said OpenAI is open to exploring new revenue sources. “Our current business is experiencing rapid growth, and we see significant opportunities within our existing business model,” Friar added, “While we’re open to exploring other revenue streams in the future, we have no active plans to pursue advertising.”

She emphasized the need for careful consideration, stating the company would be “thoughtful about when and where we implement” ads. Friar acknowledged the drawbacks of ad-based models, including their dependence on economic cycles and the potential shift in focus from user satisfaction to advertiser priorities.

During a recent appearance at Harvard University, CEO Sam Altman described advertising as a “last resort” for the company. Altman previously criticized bringing ads to its products. According to him, “I kind of hate ads just as an aesthetic choice. I think ads needed to happen on the internet for a bunch of reasons, to get it going, but it’s a momentary industry. The world is richer now. I like that people pay for ChatGPT and know that the answers they’re getting are not influenced by advertisers.”

Despite this stance, the Financial Times reports that OpenAI has hired talent from Google and Meta with experience in advertising. Its rivals like Perplexity AI have begun testing ads in the U.S.

OpenAI is facing mounting costs estimated at over $5 billion annually, driven by the development and maintenance of its generative AI tools like ChatGPT. Currently, the company relies on subscription models and API licensing for revenue.

The company has been expanding its product offerings. It recently launched SearchGPT for users to receive real-time responses. It is also exploring designing a web browser to compete with Google’s dominance in search.

OpenAI currently has more than 250 million weekly active users and ChatGPT is leading the AI chatbot market, with a record 3.7 billion visits in October.

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