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    ChatGPT Free Version to Introduce Ads

    Artificial Intelligence incurs significant expenses. Leading entities within this sector utilize diverse methods to finance their activities. For instance, OpenAI depends on funding from investors, while corporations like Google have begun monetizing early or emphasizing priority access to their products. Projects such as Google’s Gemini exemplify an alternative method by integrating AI within a larger corporate framework.

    Additionally, there exists a considerable commercial and business domain that offers possibilities for revenue through API access.

    One funding strategy anticipated to gain traction is advertising. Certain AI platforms appear to be starting to weave ads into their services; for example, Microsoft’s Copilot could potentially host advertisements, and Perplexity has recently launched ad-testing initiatives.

    OpenAI might explore a comparable strategy. At present, the organization generates income through paid subscriptions, but it is rapidly depleting resources from investment rounds.

    A report (behind a paywall) from the Financial Times indicates that OpenAI is contemplating the introduction of ads. Incorporating advertisements into ChatGPT or other products could mitigate some costs associated with the creation and maintenance of AI technologies. Although the report does not explicitly mention it, this may suggest that advertisements could only be visible to non-paying users.

    Sarah Friar, OpenAI’s chief financial officer, has stated that the company will be prudent regarding the integration of ads. She stressed that there are no “current plans to engage in advertising” at this time.

    The Financial Times’ evaluation of OpenAI’s hiring practices reveals that the company has recently onboarded individuals with advertising experience from firms such as Google and Meta. In May, OpenAI appointed Shivakumar Venkataraman, who previously headed Google’s search advertising sector, as their vice president.

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    Both Friar and Chief Product Officer Kevin Weil have backgrounds in advertising. Weil was instrumental in developing ad-supported functionalities at Instagram and X.

    OpenAI is currently developing a search engine, which could pave the way for the introduction of advertising. Considering that the majority of search engines utilize display ads for revenue, such an addition would likely be recognizable to users.

    Even if OpenAI is not actively pursuing advertising presently, achieving profitability will ultimately become critical.

    Friar acknowledged the complexities associated with advertising, as noted in the Financial Times article; she indicated that ads might divert a company’s focus from its users to satisfy the expectations of advertisers.

    The evolution of AI could reflect the path taken by streaming platforms, where users initially enjoy an ad-free experience, subscribe for premium content, and eventually encounter ads. Most companies are likely to explore advertising opportunities, at the very least.

    Image Source: Unsplash

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