ChatGPT Ads Mark a New Phase for OpenAI * Science and Technology Times

OpenAI plans to introduce advertising to the free version of ChatGPT as part of a broader effort to stabilize its business model.
The company says ads will appear in a limited, clearly separated format and won’t affect how the chatbot responds.
The move has sparked debate about user trust, data practices, and the long‑term sustainability of large‑scale AI services.

A Shift Toward Monetization

OpenAI will soon begin testing advertisements in the free version of ChatGPT, signaling a notable shift in how the company plans to support its widely used service. The ads will initially appear only for users who do not subscribe to a paid tier, and testing is expected to begin within weeks. Although ChatGPT has more than 800 million users, most rely on the free version, creating significant financial pressure for the company. OpenAI, despite its $500 billion valuation, continues to spend more than it earns and is seeking new revenue streams to close the gap.

The company says the ads will be placed at the bottom of ChatGPT’s responses when a sponsored product or service is relevant to the ongoing conversation. These promotional elements will be clearly labeled and visually separated from the chatbot’s generated answer to avoid confusion. OpenAI emphasizes that advertising will not influence the content or tone of ChatGPT’s responses, a point reiterated by Fidji Simo, the company’s CEO of applications. This approach mirrors practices already used by competitors such as Google and Meta, which have long integrated ads into their AI‑driven products.

Balancing Mission and Business Needs

OpenAI originally launched as a nonprofit focused on developing safe, beneficial AI, but it restructured last year into a public benefit corporation to support commercial growth. The company maintains that advertising aligns with its mission as long as it helps sustain the technology for broad public use. Critics, however, warn that personalized ads could lead OpenAI down the same problematic path as social media platforms that rely heavily on targeted advertising. Miranda Bogen of the Center for Democracy and Technology argues that chatbots serve sensitive roles for many users, making trust especially important.

Subscription revenue alone is not enough to cover OpenAI’s substantial operational costs, which include more than $1 trillion in long‑term commitments for chips and data centers. Investors worry that the company may struggle to meet these obligations, raising broader concerns about a potential AI investment bubble. CEO Sam Altman has expressed optimism that an ad‑supported model could work, noting that many users want extensive AI access without paying for it. He also commented that he personally finds value in ads on platforms like Instagram when they surface unexpected products.

Data Use and User Trust

OpenAI says it will not use personal information or user prompts to build advertising profiles, though analysts question how long such a policy can realistically remain in place. Paddy Harrington of Forrester notes that free digital services inevitably rely on monetization strategies that involve user data in some form. He points out that the long‑standing adage—“If the service is free, you’re the product”—may soon apply to AI platforms as well. This tension between accessibility and privacy is likely to shape public reaction as the ad rollout begins.