OpenAI weighs advertisement model as costs rise, but no active plans yet: report

OpenAI, valued at $150 billion, is exploring the possibility of introducing advertisements to its artificial intelligence products, marking a potential shift in its monetisation strategy.

The development was first reported by the Financial Times (FT), which highlighted comments from OpenAI's chief financial officer Sarah Friar.

The company intends to be “thoughtful about when and where we implement them (advertisements),” Friar told FT in an interview. However, in a follow-up statement, she clarified, “There are no active plans to pursue advertising” at this stage, though the discussions signal an openness to the model.


OpenAI recently appointed Shivakumar Venkataraman, Google’s former head of search advertising, as vice president. Additionally, Kevin Weil, OpenAI’s chief product officer, who previously led Instagram’s ad platform, is leveraging his expertise to guide potential strategies.

Despite its reliance on subscription models and API licensing, OpenAI is facing mounting costs, estimated to exceed $5 billion annually. This includes the expensive training and deployment of generative AI tools like ChatGPT, which boasts over 250 million weekly active users. Current revenue streams, including enterprise and individual subscriptions, generate approximately $4 billion annually but leave thin margins on API services.

OpenAI’s CEO Sam Altman expressed reservations about ads during a recent fireside chat at Harvard Business School. When asked about adopting ads, Altman remarked, “It would be a last resort… I think that ads-plus-AI is sort of uniquely unsettling to me.” However, the financial pressures of maintaining its rapid growth may necessitate a reconsideration of this stance.

FT also noted the rising trend of ad-supported AI models, with competitors such as Perplexity already piloting advertisements. The report emphasised the tension within OpenAI about the integration of ads, with some executives viewing it as an inevitable evolution and others wary of its implications for user focus and economic dependence.

For now, OpenAI continues to expand its subscription-based offerings and partnerships, maintaining a cautious approach as it navigates the challenges of scaling its ambitious operations.