OpenAI Tests Ads Inside ChatGPT in US to Develop Sustainable Revenue Model

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OpenAI Tests Ads Inside ChatGPT in US to Develop Sustainable Revenue Model

OpenAI will begin testing advertisements inside ChatGPT in the United States, introducing paid promotions into conversations for the first time as it seeks sustainable revenue while preserving free or low-cost access to its AI tools.

Who will see the ads and where

The pilot is limited to logged-in adult users in the US who use the free tier or the new ChatGPT Go plan. Higher-tier subscriptions — including Plus, Pro, Business and Enterprise — will remain ad-free. Although the trial is currently US-only, the outcome could influence availability in large markets such as India.

Why OpenAI is adding ads

OpenAI says advertising will help expand access without sharply increasing prices or imposing heavier usage limits on free users. Running large language models is costly, and the company has so far relied largely on subscription fees and enterprise deals. Ads on lower-priced tiers are intended to create an additional revenue stream while keeping powerful AI capabilities broadly available.

How ads will be presented

OpenAI has emphasised that advertisements will be clearly labelled and visually separated from ChatGPT’s responses rather than blended into AI-generated answers. Ads are expected to appear below relevant responses, with a rationale provided for why a particular ad was shown and an option for users to dismiss it.

The company has stated that ads will not influence how the model generates answers; responses will remain neutral and independent of advertising content.

Privacy safeguards and sensitive topics

To address privacy concerns, OpenAI says it will not sell user conversations or personal data to advertisers. Ad targeting will be limited, and users can disable ad personalisation or manage preferences. Importantly, ads will not appear in sensitive conversations — including topics related to health, mental health, politics and other regulated or personal areas — and users under 18 will not be served ads.

Implications for Indian users

India is one of ChatGPT’s fastest-growing markets and has seen affordable access options such as ChatGPT Go. If the ad experiment succeeds, OpenAI may roll out a similar model beyond the US, potentially preserving low-cost or free access for Indian users while introducing limited, contextual ads. The development reflects a wider trend of global tech firms experimenting with hybrid monetisation strategies to balance scale and profitability.

Opportunity for advertisers

For brands, ChatGPT presents a distinct advertising channel: ads can appear in the context of active information-seeking, offering high intent and relevance compared with passive display inventory. OpenAI’s early signals point to cautious, quality-focused placements rather than high-volume ad loading, prioritising user trust and relevance.

Next steps

The US pilot will allow OpenAI to assess user reaction, engagement and trust metrics. Depending on results, the company may refine ad formats, broaden targeting controls, or expand the programme to other markets. As generative AI platforms evolve, advertising is emerging as a core monetisation option — and OpenAI’s measured approach aims to balance revenue needs with user experience and safety.

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