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OpenAI is considering ads in ChatGPT as it prepares for an IPO.

OpenAI is considering ads in ChatGPT as it prepares for an IPO.

OpenAI to Introduce Advertising on ChatGPT for Some Users

OpenAI announced on Friday that it’s set to roll out ads on ChatGPT for select users in the U.S. This move is part of their strategy to boost revenue as they prepare for an anticipated initial public offering.

Starting in the coming weeks, the company will test ads for users on its free and lower-cost Go tiers, while Plus, Pro, Business, and Enterprise subscriptions will remain ad-free.

In a statement, OpenAI explained that ads will appear at the bottom of ChatGPT responses when relevant sponsored products or services align with the conversation.

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OpenAI emphasized that the ads will be “clearly labeled” and distinct from ChatGPT’s responses. Users will be informed about why certain ads are shown and will have the option to dismiss them.

Interestingly, ads won’t be displayed for users under 18 years old, and sensitive topics like health and politics will also be off-limits for advertisements.

The company reassured users that advertisements would not influence ChatGPT’s responses, keeping interactions private from advertisers. “We will never sell your data to advertisers,” OpenAI stated, reiterating that users can opt out of personalization features. They also plan to provide ways to avoid ads on ChatGPT, including paid ad-free options.

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Despite relying mainly on subscriptions for revenue, OpenAI sees the potential for substantial ad revenue from ChatGPT’s estimated 800 million active users weekly. According to Reuters, the company is looking to invest over $1 trillion in AI infrastructure by 2030, though funding details remain unclear.

As analyst Jeremy Goldman from eMarketer noted, users might consider switching to competing chatbots. This could prompt rivals, especially those claiming to be “ad-free by design,” to clarify their monetization strategies.

OpenAI mentioned that they have learned from user feedback, improving their ad offerings over time, while maintaining their commitment to prioritize user trust.

“We continue to focus on creating products that resonate with millions of users and businesses,” the company remarked, asserting that there are various revenue models, including advertising, that can help make intelligence more accessible.

Reuters contributed to this report.

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