OpenAI, the company behind popular AI chatbot ChatGPT, may introduce ads to its platform in an effort to generate more revenue. According to Sarah Friar, OpenAI’s CFO, the company is exploring ad-based models, but will be “thoughtful about when and where” to implement them.
The shift towards advertising comes as OpenAI experiences rapid growth, with projected $3.7 billion in sales for 2024. However, the company may burn through an estimated $5 billion in cash due to high server costs and employee salaries.
OpenAI’s decision to introduce ads raises concerns about user privacy, as companies often collect and mine personal data to power targeted advertising. In response, Friar stated that OpenAI sees significant opportunities within its existing business model, despite growing rapidly.
The company has also hired advertising talent from top tech firms like Meta and Google, suggesting that the introduction of ads may be imminent. Nevertheless, OpenAI aims to balance growth with caution, as it continues to expand into new areas such as online search.
Source: https://uk.pcmag.com/ai/155682/chatgpt-with-ads-openai-explores-new-business-model-to-cover-its-high-costs