OpenAI Said to Explore Advertising in ChatGPT as Monetization Pressures Mount

OpenAI is actively developing an advertising strategy for ChatGPT, marking a significant shift in its monetization approach as infrastructure costs soar and competition intensifies, according to a report on Wednesday. The move could introduce a highly contextual advertising channel while putting the company in direct competition with Google and Meta Platforms.

AI Generated Image

OpenAI has begun exploring ad formats that would integrate sponsored content into or alongside artificial intelligence (AI)-generated responses, reported The Information. The news media outlet said OpenAI employees have discussed ways to prioritize sponsored information in ChatGPT's responses and created mockups showing different ad placements, including sidebars with disclosed sponsored results.

The company is proceeding cautiously, aiming to keep ads unobtrusive to maintain user trust, per the report. Any ad product is likely to be tightly controlled initially, with a focus on contextual relevance rather than overt promotion.

The initiative takes on added urgency after CEO Sam Altman issued a "code red" alert earlier this month following Google's Gemini 3 launch, directing resources toward ChatGPT improvements while delaying advertising and other projects. With ChatGPT reaching nearly 900 million weekly active users but only 5% subscribing to paid plans, advertising represents a potential revenue lever as the company burns billions developing new AI technologies.

Testing Contextual Ad Formats

OpenAI is reportedly experimenting with multiple approaches to integrate advertising without disrupting user experience. One reported option involves AI models prioritizing sponsored content in responses to commercial queries. For instance, a Sephora-sponsored mascara could appear when users seek beauty product recommendations.

Recent mockups include displaying sponsored information in a sidebar adjacent to the main ChatGPT response window, accompanied by disclosures stating that results include sponsored content, The Information cited a person who viewed the mockups. Another tested approach reserves ads for secondary interactions rather than initial responses. If a user requests a Barcelona travel itinerary and clicks on the Sagrada Família, a pop-up could present sponsored tour options.

OpenAI emphasizes that it will not alter ChatGPT's main model for advertising purposes. Instead, the company plans to deploy specially built AI systems to evaluate commercial intent in conversations and surface relevant ads, an OpenAI spokesperson confirmed following The Information's report.

"People have a trusted relationship with ChatGPT, and any approach would be designed to respect that trust," the spokesperson said.

Previous Ad Sightings Denied

The advertising discussions follow earlier confusion when users reported seeing what appeared to be advertisements in late November and early December. On December 1, an AI startup co-founder posted a screenshot showing ChatGPT suggesting a Peloton app connection during an unrelated conversation, despite being a $200-per-month Pro Plan subscriber.

OpenAI's data lead for ChatGPT, Daniel McAuley, clarified the Peloton placement involved "no financial component" and was merely testing app discovery features announced in October. The company acknowledged the lack of relevancy made it a confusing experience.

On December 3, another user posted a screenshot showing a Target shopping link. ChatGPT head Nick Turley addressed the mounting speculation on December 6, stating there were "no live tests for ads" and any screenshots were either inauthentic or not advertisements. The Target link related to OpenAI's Instant Checkout feature launched with Stripe in September.

Following Google's Gemini 3 release, Altman issued an internal memo declaring "code red" and prioritizing ChatGPT improvements over other initiatives. He specified that the company would delay advertising, shopping agents, and personalized reports to allocate more resources to enhancing ChatGPT's performance, according to The Information.

Revenue Pressures and Market Opportunity

The advertising push reflects OpenAI's need to generate revenue from its massive user base while managing substantial infrastructure costs. As of October, only 5% of ChatGPT's weekly active users subscribed to paid plans. OpenAI projected at the start of this year that average revenue per nonpaying user from monetization would reach $2 annually starting nextyear and $15 by decade’s end.

The company expects products focused on nonpaying users to achieve gross profit margins between 80% and 85%, similar to Meta's Facebook. Overall, OpenAI projected around $110 billion in revenue from nonpaying users through 2030, helping offset the billions required to run AI models.

ChatGPT's commercial query volume remains limited, with only 2.1% of queries related to purchasable products as of June, according to OpenAI data. However, the company has since added shopping features including Stripe-powered checkout and partnerships with Shopify, Zillow, and DoorDash. When OpenAI released merchant data specifications in September, thousands of brands joined a waitlist.

Despite industry interest, five advertising and brand marketing executives told The Information that OpenAI has shared little information about advertising opportunities. One large agency executive said they received no response after six months of outreach attempts, while a consumer healthcare marketer reported receiving only generic optimization tips.

The advertising market represents significant opportunity. Google, Meta, and Amazon dominate approximately 60% of the global digital ad market outside China and are projected to generate nearly $560 billion in ad revenue this year, according to WARC. ChatGPT's conversational format and detailed responses create "a potentially incredible ad platform," said MoffettNathanson analyst Michael Morton.

OpenAI aims to reach 2.6 billion weekly active users by 2030, which would rival the largest social media and search companies. The company projected this summer that ChatGPT would generate $10 billioin subscription revenue this year, $20 billion next year, and roughly $35 billion in 2027.