"OpenAI is entering a new era. In a series of announcements this week, the artificial intelligence giant behind ChatGPT signaled meaningful shifts in how it plans to scale its technology, and added some safety rails in response to allegations it has been subjected to time and again. This comes as OpenAI defends its governance history, navigates criticism from co-founder Elon Musk and surrounding legal drama, and strategizes ways to increase recurring revenue."
"At the center of it is that it will begin testing advertisements within ChatGPT for users on its free tier and the newly introduced $8-per-month Chat "Go" plan. This marks a new revenue source for the company as it prepares to launch hardware AI products and continues to invest heavily in data centers. Until now, it primarily relied on investments, partnerships, and subscription revenue to cover its ever-growing computing costs."
"OpenAI's belief has been that its revenue model must grow to support the value intelligence it delivers to its users and organizations. CFO Sarah Friar, in a recent blog post, explained that the company's monetization strategy has always been direct and simple. In this informational post, Friar also expanded on what could come next for the company- licensing to IP-based agreements. Further adding, "that is how the internet evolved. Intelligence will follow the same path.""
OpenAI will begin testing advertisements within ChatGPT for users on its free tier and the new $8-per-month Chat "Go" plan. The ads aim to create a new revenue source as the company prepares hardware AI products and invests in data centers. Historically the company relied on investments, partnerships, and subscription revenue to cover computing costs. OpenAI framed ads with guardrails and emphasized monetization must grow to support delivered intelligence. CFO Sarah Friar described the monetization strategy as direct and simple and mentioned potential future licensing and IP-based agreements. Sam Altman and Fidji Somo said ads will not affect information accuracy and will align revenue with usage.
Read at Miami Herald
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