"Given the computing power required by AI tools, OpenAI is spending much of the war chest derived from venture capital and investments from Microsoft and other backers building out data centers and adding staff. The company took an early lead in the AI race against a number of established Big Tech rivals, including Google, Meta and Amazon. It has repeatedly raised money, with a report in recent weeks indicating it was looking to summon another $100 billion at a valuation of $830 billion."
"Along with the ad news, the company also says expanding a subscription offering, ChatGPT Go, to the U.S. and other countries. Go, which costs $8 a month, as well as the free, base version of ChatGPT, will be the only areas where the company will place advertising. (It operates higher-tier subscription platforms for business customers.) In its announcement, the company also stressed its commitment to not let advertising influence the results given by ChatGPT."
OpenAI has begun testing advertising on ChatGPT to pursue a potential multi-billion-dollar annual revenue opportunity. The company is investing venture capital and funding from backers including Microsoft to build data centers and hire staff to meet AI compute demands. OpenAI has repeatedly raised funds and explored a large new raise at a high valuation while remaining a potential IPO candidate. The company projects a $20 billion revenue run rate in 2025 and reports hundreds of millions of users. Ads will appear only in the free tier and the $8-per-month ChatGPT Go subscription, with higher-tier business subscriptions remaining ad-free, and the company states that ads will not influence ChatGPT results.
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