OpenAI, a prominent $150 billion AI startup recognized for its popular ChatGPT platform, is pondering the idea of incorporating advertisements into its suite of artificial intelligence products in a strategic move to expand revenue sources as it transitions to a for-profit organization. The consideration to introduce ads was disclosed by Sarah Friar, OpenAI's chief financial officer, during an interview with the Financial Times. Emphasizing the need for caution in implementing ads, Friar mentioned the importance of careful consideration around when and where ads would be introduced within OpenAI's offerings.
The San Francisco-based company has started recruiting advertising experts from prominent tech companies like Meta and Google as part of its potential strategy to delve into ad monetization. With individuals such as Kevin Weil, OpenAI's chief product officer who possesses a background in developing ad-supported platforms from his tenure at Instagram, the company is gearing up to potentially navigate the complexities associated with integrating advertisements into its AI products. Additionally, the recent hire of Shivakumar Venkataraman, Google's former head of search advertising, as OpenAI's vice president signifies the company's strategic focus on enhancing its capabilities in this domain.
Despite the discussions around potentially introducing ads, OpenAI is currently experiencing robust growth in its existing business model, which is yielding significant revenues fueled by the success of ChatGPT, boasting a considerable user base exceeding 250 million weekly active users. The escalation in revenues to around $4 billion annually has been attributed to ChatGPT's success; however, the company also faces substantial expenditure projections of over $5 billion annually due to the substantial costs associated with training and advancing cutting-edge AI models.