In a recent interview, Sarah Friar, Chief Financial Officer of OpenAI, shared that the tech startup is considering introducing an advertising model. She emphasized that the company’s approach to ads would be “thoughtful about when and where we implement them.”
OpenAI, widely known for its ChatGPT product, is exploring how and where ads could function within its AI ecosystem, though specific details remain undecided. The company, valued at $150 billion following a $6.6 billion funding round in October, has reportedly been hiring advertising experts from major players like Google and Meta to lay the groundwork for this potential shift.
Friar clarified that OpenAI has no immediate plans to roll out advertising, stressing that its current model is already experiencing strong growth. However, she did not provide a timeline for when ChatGPT users might encounter ads alongside responses.
Currently, OpenAI generates a significant portion of its revenue by licensing its API to businesses and developers, as well as through enterprise and individual subscriptions to ChatGPT. However, thin margins on API access and the high costs of developing and maintaining advanced AI models are prompting the company to explore additional monetization strategies.
During a talk at Harvard, OpenAI CEO Sam Altman described advertising as a “last resort,” expressing concerns about how advertising might alter the company’s focus from users to advertisers and create vulnerabilities to economic fluctuations.
Despite these reservations, the potential integration of ads aligns with broader trends in the tech industry, where companies like Google and Meta have built highly lucrative ad-driven business models. OpenAI seems to be preparing for this possibility by hiring key figures with extensive experience in ad-supported platforms. Kevin Weil, the company’s Chief Product Officer, played a critical role in building Instagram’s ad platform, while Shivakumar Venkataraman, Google’s former Head of Search Advertising, recently joined OpenAI as Vice President.
These strategic hires suggest OpenAI is laying the foundation for an advertising framework, even as company leadership remains divided on its implementation. While Altman appears open to exploring advertising models, he has consistently voiced concerns about their potential downsides, including the risk of diverting focus from innovation and user experience.
One possibility is that ads would be targeted primarily at non-paying users, helping to subsidize the high operational costs of running and developing AI systems. This approach could mirror similar trends in AI, such as Microsoft’s Copilot on Windows, which integrates ads into its interface.
If OpenAI were to integrate advertisements into ChatGPT or its other products, it could set a precedent for AI tools incorporating ads alongside their responses. As the field evolves, advertising within AI platforms may become a widespread monetization strategy.
