"OpenAI CEO of applications Fidji Simo said in a blog post that ads will begin appearing at the bottom of the chatbot's answers for free users and for Go subscribers (who pay $8 a month) in the U.S. in the coming weeks, opening an important new source of revenue for the high-flying startup which has been valued by investors at $500 billion."
"It's a moment many in tech have long viewed as inevitable: Running frontier AI models is brutally expensive, burning through staggering amounts of computing power, electricity, and GPUs. Advertising's revenue stream is hard to resist. OpenAI expects to generate "low billions" of dollars in revenue this year, and more each year thereafter, the FT reported on Friday citing an unnamed person "close to the company.""
"OpenAI said in its blog post that the forthcoming ads will be clearly labeled, and that users' conversations with ChatGPT would be kept private. "You need to know that your data and conversations are protected and never sold to advertisers," the company said. "We need to keep a high bar and give you control over your experience so you see truly relevant, high-quality ads-and can turn off personalization if you want.""
OpenAI will begin testing ads in ChatGPT, placing labeled ads at the bottom of chatbot answers for free users and Go subscribers in the U.S. in the coming weeks. The company expects advertising to provide a major new revenue stream, with projected "low billions" this year, as running frontier AI models consumes large amounts of computing power, electricity, and GPUs. Google has already placed ads in AI Overviews within search results. OpenAI says conversations will remain private, data will not be sold to advertisers, ads will not influence answers, and users can disable personalization. Subscriptions remain a long-term priority.
Read at Fortune
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