ChatGPT maker OpenAI is toying with the idea of adding ads to its AI products, though executives are still divided.
OpenAI is said to be exploring opportunities to add ads to its AI products, according to the Financial Times. The ChatGPT maker is currently in a restructuring from a nonprofit to for-profit organization. Sarah Friar, chief financial officer at OpenAI, told the Financial Times that OpenAI was considering an advertising model and that it planned to “think carefully about when and where we implement ads.”
However, according to two people with knowledge of the matter, there is division among OpenAI executives about what ads might look like on their platforms.
From non-profits to for-profits
OpenAI has plans to switch from a nonprofit to a for-profit organization next year. This is because the current structure is fairly complex, with a nonprofit overseeing a for-profit branch, a holding company and another for-profit entity. This often leads to frustration among investors and confusion among staff, who are working on a commercial product.
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Of course, a for-profit organization must generate revenue and make a profit. Training new models involves high costs. Because of this, AI start-ups look for ways to commercialize their technology to bring in money.
In another recent interview with the Financial Times, Friar said the ChatGPT maker is aiming for 1 billion users next year. They are setting their sights on new AI agents, infrastructure and partnerships to deliver on the growth spurt. OpenAI recently completed a funding round and is currently valued at $150 billion.
Explore ads
OpenAI allegedly hired ad talent from rivals including Meta and Google, according to people familiar with the matter to the Financial Times, as well as an FT analysis of LinkedIn accounts. Friar said, “Our current company is experiencing rapid growth and we see significant opportunities within our existing business model. While we are open to exploring other revenue streams in the future, we have no active plans to pursue ads.”
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Friar has a wealth of ad experience along with kevin Weil, chief product officer at OpenAI. “After all, Weil comes from Instagram and knows how ads work,” Friar said. While advertising is a logical step toward increased revenue, there is still division among OpenAI executives. According to two people with knowledge of the discussion, there is not yet unanimity within the team on what it might look like on their platform.