OpenAI, the creator of ChatGPT, is contemplating the introduction of advertising across its artificial intelligence products as the company navigates its transition towards a profit-driven business model.
Sarah Friar, OpenAI’s chief financial officer, has indicated the San Francisco-based organisation will take a measured approach to implementing any advertising features. The company’s flagship product, ChatGPT, currently boasts an impressive weekly user base of over 250 million people, demonstrating significant market penetration since its launch in 2022.
The organisation, valued at £157 billion following its recent £6.6 billion funding round, is exploring various revenue streams to support its costly AI development programmes. The funding initiative, spearheaded by New York-based Thrive Capital, attracted investments from technology giants including Microsoft, Nvidia, and SoftBank Vision Fund 2.
Despite experiencing rapid growth in its current business model, particularly through its application programming interface services, OpenAI faces substantial operational costs. The company projects a £5 billion loss this year, highlighting the significant investment required to maintain its position at the forefront of AI innovation.
The potential move towards advertising has been bolstered by the appointment of Kevin Weil as chief product officer, whose previous experience includes developing ad-supported products for Instagram and X. However, the transition has not been without controversy, as OpenAI founder Elon Musk has filed an injunction attempting to prevent the company’s complete shift to a profit-seeking operation.
OpenAI maintains its commitment to thoughtful expansion, with Friar emphasising the company sees “significant opportunities” within its existing framework while remaining open to future revenue diversification.
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