What’s Behind OpenAI’s Sudden Shift Toward Ads in ChatGPT? Is It All About Revenue?

The thought of adding ads to a service adored and used by millions might seem like the best option, right? However, the company we’re talking about is OpenAI, whose CEO has always been in favor of free services so mankind can benefit.

It seems like Sam Altman has clearly had a change of heart regarding the decision, as new internal OpenAI documents hinted at the arrival of ChatGPT ads, coming as early as next year.

The company is already doing a great job in terms of generating revenue, but it wouldn’t hurt to add more billions by making the most of the free user monetization effect, right?

The figures forecasted show that the firm could grow to nearly $25 billion in the next four years, out of their total $125B projection with this initiative. A new projection chart was shared on X, showing rising revenues that entail new products like free user monetization. So this means ads are coming soon.

It sounds very interesting because let’s face it, ChatGPT already has nearly 600 million monthly users. The fact that advertisers can reach out to ChatGPT users really presents a great opportunity for success and reach, not to mention more revenue. However, we have to admit that the shift won’t only be major, it’s a massive change that won’t come too easily.

The matter appears like a complete u-turn from previous statements made by the company’s executives. In December, OpenAI’s CFO mentioned how the current business is witnessing so much growth, and they’re seeing a lot of great chances inside the current business model. However, they always left the window open for exploring different revenue streams. During that moment, they said no active plans were in place for ads.

We also saw the AI giant’s CEO mention during his 2024 podcast interview how he hates ads. He felt that if the company could cover the costs linked to computation without the need for using ads, then there’s nothing like it.

He shared more thoughts on how the aesthetics of ads don’t appeal to him, and it’s just a personal call. But he does realize that the internet needed ads to keep things flowing in the right direction, but today, it’s a new ballgame. The industry is richer right now, and he hoped people would rely less on that model.

Altman touted his business model as a simple but great one. The same cannot be said about other ad-supported goods and services, he continued, taking Google, Twitter, and Facebook. This, coupled with AI, just makes things worse, he continued during the podcast.

Altman hoped that the ad world would take a leap and wouldn’t interfere with the idea of taking in content, as it doesn’t interfere in a massive, fundamental manner. This includes manipulating reality so it better suits the advertisers in charge.


Image: DIW-Aigen

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