OpenAI is currently exploring various strategies to diversify its revenue streams, with the possibility of incorporating advertisements into ChatGPT under consideration. During a recent interview on Decoder, Nick Turley, who leads ChatGPT, indicated that he remains open to the idea but emphasized the need for a deliberate and tasteful approach to advertising integration.
Turley expressed, “We will develop other products, which might feature different characteristics, and ChatGPT may not be suited for advertising given its strong focus on delivering precise results to user inquiries. Nonetheless, we remain committed to exploring various options in the future.” He highlighted the effectiveness of the current subscription model and its rapid growth, pointing out substantial untapped potential.
Bloomberg reported in March that OpenAI anticipates generating $12.7 billion in revenue in the coming year through its subscription services, which would represent a significant increase from the reported $3.7 billion in 2024. Despite this optimistic forecast, the company continues to operate at a loss and is not expected to achieve positive cash flow until 2029. Turley revealed that ChatGPT has recently surpassed 700 million users, with 20 million of them being paying subscribers as of the latest data in April.
Turley remarked, “I don’t see our large number of free users as a drawback. It serves as a funnel for us to create unique offerings tailored for those willing to pay.”
CEO Sam Altman has shared his thoughts on the potential for ads within ChatGPT. During a talk at Harvard Business School last year, he described the concept of integrating ads with AI as “uniquely unsettling,” labeling it a “last resort” for ChatGPT. However, in the inaugural episode of OpenAI’s podcast in June, Altman mentioned he is “not totally against it.” This discourse emerges as competitor xAI, owned by Elon Musk, appears to have more concrete plans for incorporating ads into its Grok responses.
In addition to advertising, OpenAI is also investigating revenue generation through partnerships that would involve taking a commission on product recommendations made via ChatGPT. Turley mentioned ongoing discussions with several merchants about a project dubbed “Commerce in ChatGPT.” Ensuring that affiliate revenues do not compromise ChatGPT’s product recommendations remains a priority for the organization.
“All of our internal demonstrations in this area strongly illustrate the importance of impartiality in product selection,” Turley stated. “The unique appeal of ChatGPT lies in its ability to independently curate product suggestions without outside influence, which we aim to safeguard.”
Listeners can find the full interview by tuning into the latest episode of Decoder.
