OpenAI said Friday it will begin testing advertisements in ChatGPT’s free and lower-cost subscription tiers as the artificial intelligence (AI) company pursues new revenue streams to fund high-priced infrastructure projects.
The ads will initially appear at the bottom of ChatGPT responses when relevant sponsored products or services relevant to users’ conversations. The test will roll out in coming weeks for U.S. users of the free tier and a newly launched $8-per-month Go subscription. Higher-tier subscriptions including Plus, Pro, Business, and Enterprise will remain ad-free.
The use of ads signals a reversal for CEO Sam Altman, who previously called the combination of ads and AI “uniquely unsettling” and said he “hates” ads. However, the company faces mounting financial pressure as it pursues an ambitious $1.4 trillion infrastructure spending plan over eight years while reportedly sustaining significant losses despite generating over $13 billion in revenue in 2025.
Fidji Simo, OpenAI’s CEO of applications, emphasized privacy protections in the announcement. The company pledged not to sell user data or conversations to advertisers, and users can disable ad personalization. Ads will be clearly labeled as “sponsored” and separated from organic responses, with the company insisting advertisements won’t influence ChatGPT’s answers. Simo framed the advertising initiative within OpenAI’s mission to make artificial general intelligence accessible to everyone.
During the test phase, OpenAI will not display ads to users under 18 or in conversations involving sensitive topics including health, mental health, or politics. Users will also have the option to dismiss individual ads.
The advertising strategy could prove lucrative given ChatGPT’s ability to deliver targeted ads based on conversation context. A user planning a trip, for example, might see hotel or entertainment advertisements relevant to their destination.
The announcement comes as OpenAI expands ChatGPT’s capabilities to become more embedded in daily life. The company recently launched Instant Checkout, allowing direct purchases from retailers like Walmart Inc. and Etsy Inc. through the chatbot. Additionally, OpenAI secured a three-year licensing deal with Walt Disney Co., in which it committed $1 billion in equity while gaining access to more than 200 Disney, Marvel, Pixar, and Star Wars characters for its Sora video platform.
However, the introduction of ads could prove controversial given the personal nature of many chatbot conversations. OpenAI faces heightened scrutiny following lawsuits alleging ChatGPT encouraged users’ suicides, raising concerns about recommending potentially harmful products.
The company isn’t alone in monetizing AI through advertising. Meta Platforms Inc. recently began using interactions with its AI chatbot to target users with personalized ads, suggesting advertisements may become increasingly common across AI platforms.
