OpenAI's CFO hints at exploring ads to boost revenue as the company transitions to a for-profit model.
Ads on ChatGPT could provide free or low-cost services but may disrupt the user experience.
OpenAI has reportedly hired advertising experts, signaling ads may soon appear on ChatGPT.
OpenAI has been making headlines for transitioning to a for-profit model, exploring new ways to make revenue. One of the most talked about ways were ads and now in a recent interview with Financial Times, OpenAI’s Chief Financial Officer (CFO), Sarah Friar stated that the company is thinking about introducing an advertisement model.
The report added that OpenAI is currently thinking about when and where ads would be placed. However, later she stated that OpenAI is open to explore more revenue streams as there are no active plans to pursue ads at this time.
Until now, OpenAI has generated revenue through the ChatGPT Plus subscription service, which primarily provides enhanced features. Not only that, but the company also provides ChatGPT APIs, which enable developers to integrate AI technology into their own applications. However, the company continues to struggle with profit margins and has experienced significant cash burn. But as the company transitions to a for-profit structure, the need to explore additional revenue sources grows.
Read: Elon Musk wants court to stop OpenAI’s for-profit transition, here’s why
According to reports, the company has hired advertising experts from top tech companies such as Meta and Google, implying that the ads will soon appear on ChatGPT. If the company begins serving ads on the platform, it will be able to provide free or low-cost services while still generating revenue, but it will also face some challenges.
One of the primary concerns will be user privacy, as targeted ads will require and collect user data. Not only that, but if the ads make it to ChatGPT, they could be a double-edged sword for OpenAI, as they could boost the company’s profitability while also disrupting the user experience, making the service feel more cluttered or intrusive. It may be unsettling to some users, resulting in negative reactions.
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Ashish Singh
Ashish Singh is the Chief Copy Editor at Digit. Previously, he worked as a Senior Sub-Editor with Jagran English from 2022, and has been a journalist since 2020, with experience at Times Internet. Ashish specializes in Technology. In his free time, you can find him exploring new gadgets, gaming, and discovering new places. View Full Profile
