OpenAI has abandoned its ambitious plan to integrate direct checkout functionality within ChatGPT, highlighting the more difficult-than-expected path to monetizing AI-powered commerce. According to a recent report from The Information, OpenAI is significantly scaling back its initiative for in-chat purchases and will instead rely on third-party applications connected to the chatbot to facilitate transactions.
An OpenAI spokesperson confirmed this strategic shift. The spokesperson stated that the company is evolving its commerce strategy within ChatGPT to better serve merchants and users where they are already active. Instant checkout functionality is being moved into apps, where purchases can occur more seamlessly. This means users will no longer be able to buy products directly from search results within ChatGPT; instead, they will need to complete payments through a retailer's own app or be redirected to the retailer's website.
This change marks a significant retreat for OpenAI in the AI e-commerce space, directly impacting market expectations for its commercialization path. Just six months ago, the company viewed this as a core business opportunity, planning to generate revenue by taking a share of sales.
The decision to abandon direct checkout stems from challenges related to both user behavior and technical implementation. According to an informed source, OpenAI employees observed that while users research and search for products within ChatGPT, they do not use the chatbot to finalize purchases.
Data underscores this issue. Shopify President Harley Finkelstein revealed during an investor meeting that, out of the millions of merchants partnered with Shopify, only about a dozen are currently making sales through AI tools. He attributed the stalled broader expansion primarily to the AI companies, stating that the only limiting factor is waiting for AI agent applications to open their doors further.
On technical and compliance fronts, implementing large-scale shopping via chatbots presents significant hurdles. Merchant information, such as pricing and inventory, requires high standardization and real-time updates. Simultaneously, payment companies need to establish safeguards to prevent AI from initiating fraudulent or erroneous transactions. Furthermore, as of this past February, OpenAI had not yet established a system to collect and remit state sales taxes, indicating that its underlying commercial infrastructure remains underdeveloped.
Although early partners like Shopify and Etsy had high hopes for AI shopping, practical implementation has progressed slowly.
This represents a shift from a comprehensive approach to a retreat into the app ecosystem. Last September, OpenAI announced high-profile partnerships with giants like Etsy, Shopify, and Stripe, promising to bring millions of online store products into ChatGPT. Etsy even initially covered commission fees for merchants to help launch the project.
The current strategic contraction significantly narrows the pool of potential retailers for OpenAI. Presently, the early commerce companies that launched apps for ChatGPT include only a few, such as Instacart, Target, Expedia, and Booking.com. For instance, Instacart added a feature last December allowing users to pay within ChatGPT by linking their existing accounts.
Despite abandoning direct checkout, OpenAI has not completely exited e-commerce infrastructure development. According to sources, OpenAI and Stripe will continue collaborating on an "Agentic Commerce Protocol," aimed at establishing rules for merchants, payment processors, and AI companies involved in transactions to support app-based purchases.
The setback in e-commerce monetization directly elevates the strategic importance of OpenAI's advertising business. Faced with a large user base consisting predominantly of free users, advertising is becoming another major pillar for generating substantial revenue. It remains unclear whether OpenAI will take a share of sales facilitated through ChatGPT apps.
This strategic shift coincides with intensifying capital competition among tech giants in the AI sector. Last Friday, e-commerce giant Amazon.com announced an initial investment of $150 billion in OpenAI. While Amazon might use OpenAI's customized models in its consumer-facing applications, such as its shopping chatbot Rufus, the announcement did not mention selling Amazon.com goods within ChatGPT.
Amazon.com previously blocked AI applications, including ChatGPT, from scraping its product information. However, Amazon.com CEO Andy Jassy has expressed willingness to collaborate with external AI shopping tools if the terms are attractive. This indicates that the battle over traffic entry points and commercial interests at the intersection of AI and traditional e-commerce is just beginning.
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