OpenAI is quietly exploring new commercialization paths for its flagship product ChatGPT, planning to introduce advertising as a fresh revenue stream. This move could potentially reshape the trillion-dollar digital advertising market currently dominated by Google and Meta.
On December 24, sources familiar with the matter revealed that OpenAI has begun internal discussions about modifying its AI models to prioritize sponsored content. The company has already created internal prototypes demonstrating various advertising formats within ChatGPT, signaling concrete planning stages for its advertising venture.
Proposed solutions include embedding sponsored content at the top of ChatGPT's responses when users make relevant queries. Recent internal models showcase multiple ad display methods, such as showing sponsored information in the sidebar of the main response window. This initiative aims to monetize ChatGPT's massive user traffic and challenge established digital advertising giants.
An OpenAI spokesperson responded: "As ChatGPT grows more powerful and widespread, we're exploring ways to continue delivering enhanced intelligence for everyone. This includes examining what advertising might look like within our products." The spokesperson emphasized that any implementation would prioritize maintaining user trust in ChatGPT.
Unlike simply replicating existing social media or search ad models, OpenAI aims to create a novel form of digital advertising. Sources indicate the company plans to leverage detailed user chat data to display highly relevant ads matching user intent. Internal discussions focus on displaying ads without compromising user experience, favoring "non-intrusive" formats that only appear at specific conversation stages.
One prototype demonstrates this approach: when users ask ChatGPT to plan a Barcelona itinerary, the chatbot might recommend Sagrada Familia. While this recommendation itself isn't sponsored, clicking for more information could trigger a window displaying paid travel service links.
This advertising exploration comes amid OpenAI's significant monetization pressures. Since its 2022 launch, ChatGPT's weekly active users have surged to nearly 900 million, yet only about 5% are paying subscribers as of October. Advertising could generate substantial revenue from free users, with OpenAI projecting average annual revenue per free user to grow from $2 next year to $15 by 2030, potentially reaching $110 billion total with gross margins rivaling Meta's Facebook at 80-85%.
The move would position OpenAI directly against Google, Meta and Amazon in the global digital advertising arena. These three companies currently control about 60% of the market (excluding China), with projected 2025 ad revenues nearing $560 billion. Analysts note ChatGPT's conversational format could make it a remarkably effective advertising platform for capturing user attention.
Advertising remains a sensitive topic for OpenAI, with internal concerns about eroding user trust and potential conflicts with its mission to develop artificial general intelligence (AGI). CEO Sam Altman previously called advertising a "last resort" in May 2023, though his stance has softened recently, acknowledging advertising as "somewhat annoying but not completely unworkable."
While advertising discussions continue, OpenAI is laying commercial foundations through e-commerce integrations. The company has added shopping features including Stripe-powered checkout and partnerships with Shopify, Zillow and DoorDash to embed retail, real estate and food delivery services into chat experiences. These features not only cultivate AI shopping habits but also provide valuable merchant data for future targeted advertising.
However, OpenAI's advertising initiative remains in early stages. Internal "code red" priorities focusing on core ChatGPT improvements have reportedly delayed advertising work. Though brands express strong interest in ChatGPT ads, five advertising executives confirmed they've received no concrete information about paid advertising opportunities from OpenAI to date.
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