Will ads come to ChatGPT soon? OpenAI CFO says they’re thinking about it
As OpenAI is in the process of restructuring into a for-profit model, the company is looking for ways to increase its revenue, and it’s choosing the quickest path: advertising.
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Since ChatGPIT-maker, OpenAI, is restructuring itself from its existing non-profit structure to a for-profit model – which has also been a bone of contention for Elon Musk – the company is naturally looking for ways to increase its revenues. Is searching. , What is the fastest way to do this? Advertisement. Sarah Fryer, Chief Financial Officer (CFO) of OpenAI said financial Times In an interview he told that the company is considering introducing an advertising model. She says, however, that the company plans to be thoughtful about “when and where” to implement ads.
Interestingly, immediately after the said interview footFryer – perhaps fearing backlash – released a statement saying, “While we are open to exploring other revenue streams in the future, we have no active plans to expand advertising further.”
As of now, OpenAI primarily generates revenue through its ChatGPT Plus subscription service. The platform also makes money from its ChatGPIT API, which basically allows developers to build applications using the company’s AI technologies. Despite forecast revenues of $3.7 billion for 2024, OpenAI is expected to suffer significant cash losses of approximately $5 billion this year, driven by higher operating costs, including server infrastructure and employee salaries.
Currently, the company is also making changes to the profit structure and exploring the online search market with its AI-powered search engine, which is also set to compete with Google. OpenAI has reportedly recently recruited advertising experts from major tech companies like Meta and Google, which also suggests that ads may soon appear on ChatGPT.
The advertising model has become a popular option for companies aiming to generate quick revenue. Platforms like WhatsApp, Instagram and Facebook have adopted ads, creating a steady income stream by taking advantage of their huge user base. There are a lot of benefits in advertising revenue. It provides free or low-cost services to users while maintaining profitability for the company. Advertisements can also provide users with relevant products or services tailored to their preferences.
However, integrating ads comes with challenges. An important concern is user privacy, as targeted advertising often relies on collecting and analyzing user data. This raises ethical and regulatory questions about how companies handle sensitive information. Additionally, advertisements may disrupt the user’s experience, making the Services cluttered or intrusive. For OpenAI, introducing advertising could spark similar debate, especially since users have become accustomed to ad-free interactions with its AI products.
