OpenAI considers ads to boost revenues

ChatGPT maker OpenAI could introduce advertising to its AI products after rival companies like Google and Perplexity announced similar plans.

Open AI is exploring advertising as a new source of revenue following its move to restructure as a for-profit company, the Financial Times reported.

Sarah Friar, the San Francisco-based startup’s chief financial officer, told the outlet that the company was considering an ad-supported model but would be “thoughtful” about how to implement it.

"Our current business is experiencing rapid growth, and we see significant opportunities within our existing business model," Friar said in a comment sent to Cybernews.

While OpenAI was "open to exploring" other sources of revenue in the future, it had "no active plans" to pursue advertising, she said.

While advertising has helped big tech rivals like Google and Meta monetize their online audiences, executives at OpenAI are divided on how it should look on their platform, writes the Financial Times.

It said that chief executive Sam Altman is “warming” to the idea, and the company has recently hired advertising talent from Google and Meta.

These include OpenAI’s chief product officer Kevin Weil, who previously worked on advertising products on Instagram and X, and vice-president Shivakumar Venkataraman, who previously led Google’s search advertising team.

OpenAI maintains that these hires are coincidental. The company says that bringing ads on its products is a question of "if" rather than "when."

Google has introduced ads on its AI Overview search and OpenAI’s smaller rival Perplexity is also experimenting with advertisement.

OpenAI has moved to restructure its core business model into a for-profit entity in an attempt to make it more appealing to investors. It secured $6.6 billion in its most recent funding round in October. At $150 billion, it is now one of Silicon Valley’s most valuable private companies.

Elon Musk, who co-founded the group but later left and is now the owner of competitor xAI, has asked a federal court to block OpenAI’s restructuring into a for-profit, arguing that it may create a monopoly.