ChatGPT May Soon Serve Up Ads for Products It Thinks You'd Like

ChatGPT is getting ads.

OpenAI announced Friday that it will be testing ads in its free version for logged-in, adult U.S. users. It's also rolling out an $8-per-month "Go" subscription tier that includes some upgraded capabilities, like longer memory and more image creation opportunities. That's a lower price than its "Plus" ($20/month) and Pro ($200/month) subscriptions.

"Go" subscribers will still get ads. Plus, Pro and OpenAI's business customers won't.

Altman Changed His Mind

OpenAI CEO Sam Altman has previously expressed reservations about introducing ChatGPT ads. But the move comes as OpenAI is urgently trying to figure out how to bring in more revenue from its 800 million monthly users to help afford the $1.4 trillion it has committed to spending on AI infrastructure over the next eight years.

Altman said in November that the company expected to end 2025 with around $20 billion in annual revenue. That sounds like a lot until you realize they need $1.4 trillion over the next eight years.

Last year, the company launched "Instant Checkout" that lets users buy items from retailers like Walmart and Etsy directly through ChatGPT. OpenAI also introduced health and learning tools as it looks to make ChatGPT a more essential part of users' everyday lives and potentially give them a reason to upgrade to a paid subscription.

How the Ads Will Work

Advertising could prove lucrative for OpenAI. Using information from people's conversations with ChatGPT could make for highly targeted ads. If you ask ChatGPT for help planning a trip, it could serve up ads for a hotel or entertainment in the area.

As part of the test, ads will show up at the bottom of ChatGPT's answer to a user's query and will be labeled as "sponsored." OpenAI said ads won't dictate the answers ChatGPT provides, adding that users "need to trust that ChatGPT's responses are driven by what's objectively useful."

The company also said it will not sell user data or conversations to advertisers. Users can turn off ad personalization based on their chats. OpenAI doesn't plan to advertise in conversations about "regulated topics" including health, mental health or politics.

"Given what AI can do, we're excited to develop new experiences over time that people find more helpful and relevant than any other ads," OpenAI said in a blog post. "Soon you might see an ad and be able to directly ask the questions you need to make a purchase decision."

Altman's Previous Stance

Altman said in a 2024 interview that he "hates" ads and called the idea of combining ads with AI "uniquely unsettling," although he added that "I'm not saying OpenAI would never consider ads."

Last year, he said he wasn't "totally against" adding ads to ChatGPT, but said it would "take a lot of care to get right."

Privacy and Safety Concerns

Inserting ads into chatbot conversations could be controversial, given users' sometimes personal and intimate conversations. The move will amp up pressure on OpenAI to ensure it doesn't recommend products that could be potentially dangerous or harmful, especially after the company has faced lawsuits alleging that ChatGPT encouraged users' suicides.

OpenAI said it will not serve ads to users who have identified themselves as, or who it believes are, under 18. The company uses AI to estimate users' ages based on their conversations and usage habits.

Broader Trend

Ads are likely to be a growing part of users' AI experiences across a range of platforms. In December, Meta began using information from users' interactions with its AI chatbot to target them with more personalized ads.

The Bottom Line

OpenAI needs money. They are committed to spending $1.4 trillion on AI infrastructure over eight years. Making about $20 billion annually, the math doesn't work without new revenue streams.

Ads are coming to ChatGPT's free tier and the new $8/month "Go" subscription. Only Plus ($20/month), Pro ($200/month) and business customers get an ad-free experience. The ads will show up at the bottom of ChatGPT's responses, labeled as "sponsored." OpenAI says they won't influence the actual answers ChatGPT gives. Whether that holds true in practice remains to be seen.

OpenAI promises not to sell user data or conversations to advertisers. Users can opt out of ad personalization. No ads in conversations about health, mental health or politics.

The $8/month "Go" tier is interesting. Cheaper than Plus but still gets ads. Gives users some upgraded features without the full $20/month commitment. But you're paying $8/month and still seeing ads, which feels like getting squeezed from both ends.

Whether users tolerate ads in ChatGPT depends on how intrusive they are and whether the targeting feels creepy or helpful. OpenAI's betting users will find them "more helpful and relevant than any other ads."

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