OpenAI is Exploring How to Introduce Ads Into its Products

OpenAI is currently looking to diversify its revenue sources to support its explosive growth. While the company currently makes money through licensing its products and services and subscriptions, Sarah Friar, OpenAI’s Chief Financial Officer recently told the Financial Times that exploring advertising revenue was now on the table.

Speaking about the possibility of introducing an ads model into its products, Freir said that the company wanted to be “thoughtful about when and where we implement them [ads].” The exec also pointed out that Kevin Weil, the company’s chief product officer and a former advertising exec at Instagram and X knew the advertising business. “The good news with Kevin Weil at the wheel with product is that he came from Instagram. He knows how this [introducing ads] works,” Friar said.

Still, the Financial Times reported that OpenAI executives are still undecided about how to implement ads into their AI products, citing two people familiar with the discussions. OpenAI CEO Sam Altman is said to be in favor of exploring this new revenue source, however.

In a statement sent to the Financial Times following her interview, Friar clarified that the company is not actively working on an ad-supported model. “Our current business is experiencing rapid growth and we see significant opportunities within our existing business model. While we’re open to exploring other revenue streams in the future, we have no active plans to pursue advertising,” the exec said.

OpenAI is currently valued at $150 billion after raising $6.6 billion via a new funding round in October. However, the ChatGPT maker doesn’t make enough money to be sustainable. Developing OpenAI’s cutting-edge AI models is incredibly expensive, and according to a previous report from the New York Times, the company expects about $5 billion in losses on $3.7 billion in revenue in 2024.