"In 2024, OpenAI's CEO, Sam Altman, called ads a "last resort" for businesses. Well, the parent company of ChatGPT appears to have hit this point in less than two years. OpenAI made big news recently when it announced plans to start testing ads on U.S. users of its free and low-cost subscription accounts. The ads will be clearly labeled, and OpenAI also said it does not plan to sell user conversations to companies or let advertisements drive conversations."
"However, larger forces are at work limiting ChatGPT. The U.S. power grid is in major need of an update and may run out of capacity in the near future without big upgrades. Artificial intelligence (AI) consumes a ton of power and other resources, such as water. If ChatGPT continues to grow rapidly, it will need more data centers, which are costly to build."
OpenAI plans to begin testing clearly labeled advertisements for U.S. users of free and low-cost ChatGPT plans while pledging not to sell user conversations or let ads drive chat outputs. The shift aims to materially increase company revenue as usage grows. ChatGPT reached about 900 million weekly active users and an annualized revenue run rate exceeding $20 billion. Rapid growth strains infrastructure: AI models consume large amounts of power and water, and U.S. grid capacity may need upgrades. Additional data centers are required but are costly, and OpenAI has substantial outstanding data-center commitments. Regulatory and external challenges also persist.
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