As OpenAI restructures to become a for-profit company, users might start seeing ads pop up when using the company’s products.
The company’s chief financial officer, Sarah Friar, said in an interview that it’s not a case of whether or not ChatGPT users might start seeing ads but “when and where.” However, she also suggested it won’t be any time soon.
The company is expanding with some big name hires from Meta and Microsoft; as it pushes ahead with a huge restructuring plan to move away from its not-for-profit past.
Exploration but No ‘Active Plans’
In an interview with the Financial Times, Friar nodded to the changes – that have been marked by dramatic comings and goings – and said that the “current business is experiencing rapid growth.”
She shared that the company “see[s] significant opportunities within our existing business model,” and says that OpenAI is “…open to exploring other revenue streams in the future.” However, she also stated that the company has “no active plans to pursue advertising.”
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But tongues are wagging not least because both Friar and chief product officer Kevin Weil have proven track records in building out ad-supported products. Friar previously worked at Square, Salesforce, and Nextdoor, while Weil’s resume includes time at Instagram.
Friar acknowledged this, telling the publication:
“The good news with Kevin Weil at the wheel with product is that he came from Instagram. He knows how [introducing ads] works.” – Sarah Friar, CFO at ChatGPT
Details Scant
However, Friar could not be drawn on what having ads could look like for its customers, including its ChatGPT users. When asked after the interview for clarity, she said in a statement:
“OpenAI is stepping up efforts to generate revenue from its products, such as its AI-powered search engine, as it seeks to capitalize on its early lead in the booming AI sector.” – Sarah Friar, CFO at ChatGPT
But discussions are definitely taking place. The newspaper quotes “people with knowledge of the[se] discussions” that OpenAI’s exec team is “divided” on how the company could incorporate ads and the impact this might have. However, the report says chief executive Sam Altman “is warming up to the idea.”
Friar suggested that ads are just one option that the company is considering. “I don’t preclude [ads],” she said. “But for now there’s lots of low hanging fruit in the way we are doing things.”
Rising Costs
Introducing advertising might be one of the easiest options to raise cash as developing its AI models is costing OpenAI billions, with the company reportedly on track to spend more than $5 billion.
Ads could target ChatGPT’s 250 million active weekly users. However, Friar suggested that ad models can be problematic, not least because companies can feel conflicted in balancing customer and advertising clients’ needs. The ad market is also sensitive to the general ups and downs of world economics.
But as Anthropic furiously iterates to catch it up, and bags another $4 billion investment from Amazon, OpenAI will be considering how it make money to stay ahead, and fast.
