OpenAI is set to introduce ads in ChatGPT as part of its efforts to support the rapidly growing costs of running large-scale artificial intelligence systems. The company announced on Friday that it will begin testing ads in the United States in the coming weeks, and these ads will be restricted to free and lower-tier accounts, with paid accounts continuing to enjoy an ad-free experience.
Why is OpenAI turning to ads?
Advertising has always been a sensitive topic for generative AI systems, which have so far refrained from adding advertisements to conversations. According to a report by The Hindu, the operating expenses of OpenAI are quite high, mainly because of the processing requirements for running and enhancing its models. Since the number of subscription-paying customers is a small fraction of its almost one billion users, there has been pressure on the company to diversify its revenue streams.
Since its launch in 2022, ChatGPT has contributed to OpenAI’s valuation entering the orbit of trillions of dollars, with funding rounds estimating it to be close to $500 billion. However, the firm continues to spend money freely, investing in the expansion of its infrastructure. The decision to add advertising to its offerings brings OpenAI’s business model a step closer to the likes of Google and Meta, which use advertising dollars to fund their bets on AI. Amazon also has a significant advertising business.
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Safeguards around ads and trust
OpenAI assures that ads will be labelled clearly and kept distinct from the way the chatbot responds. The company also makes it clear that advertising will not influence the answers and recommendations, and chats will not be shared with advertisers.
“Ads do not influence the answers ChatGPT gives you,” OpenAI said, adding,” Answers are optimised based on what's most helpful to you. Ads are always separate and clearly labelled."
Chief executive Sam Altman has previously voiced concerns that advertising could undermine trust. Addressing this, Fidji Simo, OpenAI’s CEO of applications and a former Meta executive, said preserving user trust remains central to the rollout.
Competing in a crowded AI race
The move comes as competition is honing its edges. Google is integrating AI into Gmail, Maps, and YouTube, which means that it is competing directly with ChatGPT. OpenAI has stated that it will not optimise ChatGPT for maximising time spent on the site.
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Age prediction and user protections
Meanwhile, OpenAI is introducing age prediction features globally to identify accounts that are probably run by minors and implement additional safety measures. This feature is expected to arrive in the EU in the coming weeks as OpenAI prepares for future age-verified services.
In a statement, OpenAI said, “When the age prediction model estimates that an account may belong to someone under 18, ChatGPT automatically applies additional protections designed to reduce exposure to sensitive content.”
ChatGPT currently has around 800 million weekly active users. OpenAI’s annualised revenue crossed $20 billion in 2025, up from $6 billion in 2024, reflecting rapid growth alongside expanding computing capacity.
