OpenAI has no immediate plans for ChatGPT advertising

Don't anticipate advertising in OpenAI's products like ChatGPT and its search engine in the near future. While it's possible that OpenAI might incorporate ads into its AI search engine down the line, there are no immediate plans for this.

OpenAI's Stance. According to Sarah Friar, OpenAI's Chief Financial Officer:

• "Our business is currently growing rapidly, and we see substantial opportunities within our existing business model. Although we are open to exploring other revenue streams in the future, we currently have no active plans to pursue advertising."

Friar did not completely rule out advertising as a potential revenue source. OpenAI will be "thoughtful about when and where" to implement advertising, as reported by the Financial Times. It was also noted that OpenAI has recruited former advertising professionals from Google, Meta, and other companies.

Ads are temporary. OpenAI CEO Sam Altman has expressed a strong dislike for ads. In an interview earlier this year, he described internet ads as a "temporary industry":

• "I have an aesthetic dislike for ads. They were necessary for the internet's development for various reasons, but they are a temporary industry. The world has more wealth now. I appreciate that people pay for ChatGPT and know that the responses they receive are not influenced by advertisers. I'm sure there's an ad format that could work with LLMs, and there might be a way to engage in the transaction stream in an unbiased manner that's acceptable, but it's also easy to envision dystopian futures where ChatGPT suggests, 'You should consider buying this product,' or 'You should think about going here for your vacation,' or something similar."
• "And I don’t know, we have a very straightforward business model that I like, and I know that I'm not the product. I know I'm paying, and that's how our business model functions. When I use Twitter, Facebook, Google, or any other great ad-supported product, I'm not fond of it, and I believe it will only deteriorate, not improve, in an AI-driven world."

More recently, during a fireside chat at Harvard University, Altman referred to ads as a "last resort for us":

• "I'm not saying OpenAI would never consider ads, but I generally dislike them, and the combination of ads and AI is particularly unsettling to me."

Here is the video of that discussion:

Why it matters. OpenAI and its new search product are currently just a minor player compared to Google Search. However, this minor player is expanding. If this trend continues and its user base grows, ChatGPT could eventually challenge Google. However, no "Google killer" search engine has yet succeeded in breaking users' habits of using Google Search.

Degradation. Like Altman, many believe that Google and other platforms have declined due to the inevitable "degradation" of their products, which occurs when a platform shifts its focus from user experience to maximizing profit through advertising.

As OpenAI transitions into a for-profit entity, it still lacks significant search market share. Nonetheless, referral traffic from ChatGPT is on the rise.

If ChatGPT continues to grow, advertisers will undoubtedly want to reach its users. OpenAI may be monitoring the success of Perplexity's sponsored follow-up question ad model to see if it could be a viable option.

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