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OpenAI introduces ads in ChatGPT as trial begins
OpenAI will soon display advertisements at the top of ChatGPT responses for select users in the United States, the company announced on Saturday. The move marks a shift toward monetization for the widely used AI tool.
Trial details and new subscription tier
The ad trial will initially target free-tier users and those subscribed to ChatGPT Go, a new, lower-cost plan priced at $8 per month (or local currency equivalent). The plan will be available globally, offering an alternative to existing tiers like ChatGPT Plus ($20/month) and ChatGPT Pro ($200/month).
Ads will appear as banners following user prompts. For example, a query about travel destinations in Mexico might trigger holiday-related advertisements. OpenAI clarified that ads will not influence ChatGPT's responses and that conversation data will remain private, not shared with advertisers.
Financial pressures drive ad exploration
OpenAI framed the decision as a way to expand access to its tools with fewer usage restrictions. However, analysts suggest the move reflects broader financial challenges in the AI sector. Despite rapid user growth, OpenAI remains unprofitable, with reports indicating an $8 billion loss in the first half of 2025 alone.
The Financial Times noted that only 5% of ChatGPT's 800 million users are paid subscribers, highlighting the need for additional revenue streams. Henry Ajder, an AI and synthetic media expert, called the shift unsurprising, stating: "OpenAI has seen massive user growth but continues to burn investor money. To turn a profit, it must diversify beyond subscriptions, and advertising is a reliable model for software businesses."
Industry trends and skepticism
OpenAI's pivot toward ads contrasts with earlier statements from CEO Sam Altman, who previously described advertising as a "last resort." The company, originally founded as a non-profit, has increasingly adopted commercial strategies to sustain operations.
Other AI firms are also exploring ad-based models. Perplexity appointed a head of advertising and shopping in 2025, though the executive departed nine months later. Meanwhile, Google has denied reports of plans to integrate ads into its Gemini AI tool in 2026.
Broader context: The AI profit dilemma
The AI sector faces growing scrutiny over its valuation and profitability. Some analysts warn of an unsustainable "bubble," driven by investor hype rather than demonstrated financial viability. OpenAI's ad trial reflects a broader industry struggle to balance growth with monetization.
ChatGPT Go, initially launched in India in 2025, was later expanded globally. The new tier aims to attract users unwilling or unable to pay higher subscription fees, potentially widening the tool's accessibility.
