OpenAI is exploring the potential introduction of advertising for users of the free version of ChatGPT as a means to enhance revenue streams. In a recent interview with the Financial Times, Chief Financial Officer Sarah Friar indicated that, although there are no immediate plans, the option of integrating advertising is being considered to help cover the substantial costs associated with maintaining and developing AI infrastructure, which could reach up to $5 billion this year solely for AI training.
Despite OpenAI’s market valuation exceeding $150 billion, the implementation of advertising could provide a sustainable revenue stream, allowing users continued access to the service at no cost while enabling the company to remain profitable. The company has already strengthened its team by hiring advertising specialists from Meta and Google, indicating a strategic shift in their approach. However, Friar mentioned the importance of careful consideration regarding the timing and placement of advertisements to avoid compromising the user experience.
There have been indications of a shift in perspective from CEO Sam Altman, who previously viewed advertising as a “last resort.” Recent reports suggest he may now be more open to this strategy as OpenAI seeks various pathways to ensure profitability and broaden user access.
For competitors like Google, the potential introduction of advertising in ChatGPT may pose challenges, particularly as Google faces a decline in its online advertising market share, with predictions that it could drop below 50% by 2024. Other players, including Meta and Amazon, are gradually gaining ground in this market, complicating the competitive landscape.
To provide users with an ad-free experience, OpenAI offers the ChatGPT Plus plan, priced at $22 per month. This subscription service provides benefits such as access to advanced language models, increased message limits, and image creation capabilities. OpenAI has also developed service packages tailored for organizations and businesses.
Furthermore, OpenAI is pursuing partnerships to enhance its offerings, including a collaboration with Apple to integrate ChatGPT into Siri in the forthcoming iOS 18.2 update. While Apple does not make direct payments to OpenAI, the promotion of ChatGPT Plus in device settings could incentivize more subscriptions.
The anticipated iOS 18.2 update, set for public release on December 9, represents OpenAI’s strategic efforts to broaden the functionality and accessibility of ChatGPT through key partnerships and feature enhancements.
