OpenAI Plans Targeted Advertising Tests in ChatGPT to Boost Revenue

OpenAI is preparing to introduce advertising inside the ChatGPT app, signaling a notable shift in strategy as the company looks to strengthen its revenue base behind one of the world’s most widely used AI tools.

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The initial ad tests will roll out in the coming weeks to a limited group of US users, specifically those who are logged into the free version of ChatGPT and subscribers to the lower-priced “ChatGPT Go” plan. The $8-per-month tier debuted in India and is now expanding to the US market, according to a company announcement on Friday. Higher-priced subscription plans will continue to offer an ad-free experience.

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This move toward advertising highlights OpenAI’s broader effort to diversify its income streams as it prepares for a possible initial public offering. It also reflects the financial reality of operating large-scale artificial intelligence systems. OpenAI has said it does not expect to turn a profit for several years and has committed roughly $1.4 trillion to building and maintaining data centers and advanced chips needed to power its AI models.

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Until now, OpenAI has leaned heavily on subscriptions and enterprise services to fund its growth. Embracing ads marks a philosophical shift for the company. Chief Executive Officer Sam Altman has previously voiced skepticism about advertising, even calling it a “last resort.” He has warned that users might place less trust in a chatbot if they believe its responses are influenced by product promotion.

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Still, competitive pressures are mounting, as rivals such as Alphabet’s Google have already begun weaving ads into their own AI-powered products.

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For the initial phase, OpenAI plans to display sponsored products and services beneath relevant ChatGPT responses. The ads will be clearly labeled and visually separated from the main conversation to avoid confusion. According to the company, the goal is not just monetization, but also to help users discover products and services that may be genuinely useful in the context of their queries.

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“Our enterprise and subscription businesses remain strong,” said Fidji Simo, OpenAI’s CEO of applications, in a blog post announcing the change. “We believe in building a balanced revenue model, and advertising can play a role in making advanced intelligence available to a broader audience.”

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By introducing ads, OpenAI is following a well-worn path taken by major internet platforms such as Meta Platforms and Google, which subsidize free or low-cost services by selling targeted advertising to massive user bases.

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ChatGPT now attracts more than 800 million weekly users, giving OpenAI a scale that advertisers find hard to ignore. Several senior leaders at the company bring deep advertising experience, including Simo, who previously helped expand Facebook’s ad business before later becoming CEO of Instacart.

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OpenAI emphasized that advertising will not interfere with how ChatGPT generates answers. According to the company, ads will have no influence over the chatbot’s responses, and conversations will not be shared with advertisers. In addition, OpenAI said it will avoid showing ads related to sensitive categories such as mental health and politics to users it identifies as being under 18 years old. The company also plans to adjust the advertising experience based on early user feedback.

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“As we roll out ads, protecting what makes ChatGPT useful and trustworthy is essential,” Simo wrote. “Users need confidence that responses are driven by what’s genuinely helpful, not by commercial interests.”

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For investors, the decision to test ads inside ChatGPT underscores OpenAI’s evolving business model as it balances explosive growth with staggering infrastructure costs. Advertising could eventually become a meaningful contributor to revenue, particularly given ChatGPT’s global reach and high engagement levels. At the same time, how well OpenAI manages user trust during this transition may determine whether ads become a sustainable pillar of its long-term strategy or remain a limited experiment.

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As AI platforms move closer to mainstream consumer adoption, OpenAI’s approach could offer a preview of how future digital assistants are monetized, blending subscriptions, enterprise services, and advertising while attempting to preserve user confidence and product integrity.

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