OpenAI considers ads amid financial pressure
Amid rising costs, OpenAI is exploring advertising as a potential revenue stream.
OpenAI is exploring advertising as a potential revenue model, according to a Financial Times report. While CFO Sarah Friar emphasised that there are ‘no active plans to pursue advertising,’ the company recently hired Shivakumar Venkataraman, a former Google ad executive, signalling interest in the possibility. OpenAI currently relies on subscriptions to fund its costly generative AI models, but rising expenses may prompt a shift in strategy.
The idea of ads doesn’t sit comfortably with OpenAI CEO Sam Altman, who described advertising as a “last resort” during a Harvard Business School chat. Altman has expressed unease about combining ads with AI, calling the prospect ‘uniquely unsettling.’ Still, the financial realities of sustaining and expanding AI tools may leave OpenAI with few alternatives.
As OpenAI balances innovation with business pressures, any move toward advertising could reshape how users engage with tools like ChatGPT. For now, the debate underscores the tension between maintaining accessibility and meeting operational demands.
About author
DW Team
The GIP Digital Watch Observatory team, consisting of over 30 digital policy experts from around the world, excels in the fields of research and analysis on digital policy issues. The team is backed by the creative prowess of Creative Lab Diplo and the technical expertise of the Diplo tech team.
