OpenAI Plans to Introduce Ads for Free ChatGPT Users

OpenAI has announced plans to begin testing advertisements for ChatGPT users who do not subscribe to a premium plan. The company says it has not launched ads yet but expects to roll out early tests in the coming weeks.

This move marks another step in OpenAI’s broader effort to generate revenue from ChatGPT’s massive global user base, which now exceeds 800 million people—most of whom access the chatbot for free.

Why OpenAI Is Turning to Advertising

Despite its soaring valuation of around $500 billion, OpenAI continues to spend more money than it earns. The company faces mounting operational costs and growing pressure to build a sustainable business model.

Rising Costs and Financial Pressure

OpenAI relies heavily on advanced computer chips and large-scale data centres to power its AI systems. These infrastructure needs come with enormous financial commitments, estimated to exceed $1 trillion over time.

Although paid subscriptions bring in some income, they do not yet cover the company’s expanding expenses. As a result, OpenAI is exploring advertising as an additional revenue stream.

How Ads Will Appear on ChatGPT

OpenAI says advertisements will appear only when they are relevant to a user’s ongoing conversation.

Clear Separation From AI Responses

According to the company, ads will show up at the bottom of ChatGPT’s responses and will be clearly labeled as sponsored content. OpenAI has stressed that these ads will remain separate from the chatbot’s main answers.

Fidji Simo, OpenAI’s CEO of applications, emphasized that advertising will not affect how ChatGPT responds to users’ questions.

Competition From Tech Giants

OpenAI is entering a space long dominated by companies like Google and Meta. Both firms have built powerful advertising businesses and already integrate ads into some of their AI-driven products.

Unlike its rivals, OpenAI began as a nonprofit focused on developing safe and beneficial artificial intelligence. Last year, however, the company restructured itself into a public benefit corporation to support commercial growth while maintaining its original mission.

Concerns Over Trust and Personalization

Not everyone welcomes OpenAI’s advertising plans.

Worries About User Trust

Miranda Bogen from the Center for Democracy and Technology warned that personalized ads could put OpenAI on a risky path similar to social media platforms. She noted that many people use chatbots as advisors or companions, which creates higher expectations around trust and neutrality.

Critics argue that blending AI assistance with advertising could blur ethical lines, especially if users feel their trust is being exploited.

Data Privacy and Long-Term Questions

OpenAI claims it will not use personal user data or chat prompts to target ads. However, analysts remain cautious.

Paddy Harrington of Forrester Research pointed out that free digital services eventually need to monetize their audiences. He added that long-term data practices often evolve as companies seek higher profits.

Investor Expectations and the AI Bubble Debate

Investor concerns have also intensified. Major backers, including Oracle and Nvidia, expect strong returns, and some analysts worry that unmet revenue goals could fuel fears of an AI market bubble.

OpenAI CEO Sam Altman acknowledged the challenge, noting that many users want access to AI tools without paying for them. He expressed optimism that advertising could help balance accessibility with financial sustainability.