OpenAI to test ads on ChatGPT's 'free' and 'Go' tiers in the US

The company has clarified that advertisements will not affect ChatGPT’s responses and reiterated that it will “never” sell user data to advertisers.

author-image
afaqs! news bureau
New Update
SamAltman

OpenAI will start testing ads on ChatGPT in the coming weeks, signalling a change in its business strategy as the company looks to monetise its large base of free users and offset rising AI infrastructure expenses. 

CEO Sam Altman said ads will be shown to users in the US on the free tier and the recently launched ChatGPT Go plan, priced at $8 per month. Users on higher-tier plans – Plus, Pro and Enterprise – will continue to enjoy an ad-free experience.

“It is clear to us that a lot of people want to use a lot of AI and don’t want to pay, so we are hopeful a business model like this can work,” Altman wrote in a post on X (formerly Twitter).

In a blog post, OpenAI stated that ads on ChatGPT will be displayed at the bottom of the chatbot’s responses and will be clearly marked. The company also added that advertisements will not influence ChatGPT’s answers and emphasised that it will “never” sell user data to advertisers.

“Ads do not influence the answers ChatGPT gives you. Answers are optimised based on what's most helpful to you. Ads are always separate and clearly labelled.”

In his post, Altman also mentioned that he likes Instagram ads, noting that he has discovered things he enjoys that he might not have found otherwise. He added that OpenAI will aim to make ads increasingly useful for users. 

Altman had previously voiced concerns about bringing advertising to ChatGPT, warning in past interviews that ads could undermine user trust in OpenAI’s products.

However, in a podcast appearance in November, he acknowledged that OpenAI would likely experiment with ads at some stage, while noting that he did not see advertising as the company’s primary revenue driver.

Users under the age of 18 will not be shown ads, and advertisements will be excluded from sensitive areas such as politics, health and mental health.

OpenAI believes that ads can be transformative for small businesses and emerging brands trying to compete. “AI tools level the playing field even further, allowing anyone to create high-quality experiences that help people discover options they might never have found otherwise.”

It is yet to be announced when ads will roll out in India. However, OpenAI has been stepping up its presence in the market. The company launched its first debut campaign in India last month, followed by a major sports association – ChatGPT has joined the Women’s Premier League (WPL) as a premier partner for the next two seasons.

This marks one of OpenAI’s most significant commercial expansions in the country and reflects a strong endorsement of the league’s rapid rise in popularity and appeal among global and Indian brands.

Since then, ChatGPT has also been partnering with influencers and, most recently, with Indian cricket players Harmanpreet Kaur and Smriti Mandhana for a new campaign.

The long-term focus for the company remains on building products that millions of people and businesses find valuable enough to pay for.

advertising artificial intelligence ai ChatGPT OpenAI Sam Altman
afaqs! CaseStudies: How have iconic brands been shaped and built?
Advertisment