OpenAI to Test Ads in ChatGPT as it Burns Through Billions
In a bid to expand its customer base and diversify revenue, OpenAI has announced that it will begin testing advertisements inside the ChatGPT app for some US users. The move marks a significant shift from CEO Sam Altman's stance on advertising in ChatGPT, which he had described as a "last resort" just last year.
The banner ads, which will appear at the bottom of answers, are expected to be labeled and separated from the conversation history. According to OpenAI's plan, these ads will not influence the AI assistant's conversational responses, ensuring that users remain confident in the quality of ChatGPT's output.
However, critics are skeptical about the effectiveness of this approach. Ed Zitron, a tech critic, has expressed his bearish views on OpenAI's advertising product, stating that it may not be enough to cover the company's operating costs.
Meanwhile, financial pressures continue to weigh heavily on OpenAI. The company expects to burn through approximately $9 billion this year while generating $13 billion in revenue. This significant gap highlights the need for new revenue streams, with advertising being a crucial one.
OpenAI's approach appears to be a compromise between needing ad revenue and not wanting sponsored content to appear directly within ChatGPT's written responses. By placing banner ads at the bottom of answers separated from the conversation history, OpenAI aims to address its CEO's concerns while still generating much-needed income.
As OpenAI navigates this new revenue stream, it remains to be seen whether these ads will prove successful in expanding the company's customer base and bridging the financial gap.
In a bid to expand its customer base and diversify revenue, OpenAI has announced that it will begin testing advertisements inside the ChatGPT app for some US users. The move marks a significant shift from CEO Sam Altman's stance on advertising in ChatGPT, which he had described as a "last resort" just last year.
The banner ads, which will appear at the bottom of answers, are expected to be labeled and separated from the conversation history. According to OpenAI's plan, these ads will not influence the AI assistant's conversational responses, ensuring that users remain confident in the quality of ChatGPT's output.
However, critics are skeptical about the effectiveness of this approach. Ed Zitron, a tech critic, has expressed his bearish views on OpenAI's advertising product, stating that it may not be enough to cover the company's operating costs.
Meanwhile, financial pressures continue to weigh heavily on OpenAI. The company expects to burn through approximately $9 billion this year while generating $13 billion in revenue. This significant gap highlights the need for new revenue streams, with advertising being a crucial one.
OpenAI's approach appears to be a compromise between needing ad revenue and not wanting sponsored content to appear directly within ChatGPT's written responses. By placing banner ads at the bottom of answers separated from the conversation history, OpenAI aims to address its CEO's concerns while still generating much-needed income.
As OpenAI navigates this new revenue stream, it remains to be seen whether these ads will prove successful in expanding the company's customer base and bridging the financial gap.