OpenAI has begun testing advertisements on ChatGPT’s free and Go tiers, introducing sponsored placements and sidebar ads for product-related searches. The move signals a shift away from relying entirely on subscription revenue.
CEO Sam Altman said the decision is aimed at covering the cost of free usage, noting that roughly 95% of ChatGPT interactions do not generate revenue. He added that paid tiers will remain free of advertising.
OpenAI said it is testing different ad formats, which will be clearly labelled as ‘Sponsored’ to distinguish them from standard responses.
How Ads Will Appear in ChatGPT
When users ask questions like ‘best running shoes,’ sponsored ads appear alongside or below ChatGPT’s responses. Sponsored products appear alongside regular recommendations when relevant to the user’s current conversation. OpenAI has not disclosed how advertisers will be charged or how ads will be priced.
ChatGPT also shows ads in sidebar panels, using information related to the user’s current conversation, according to OpenAI. The idea is to make ads relevant without breaking the flow of the conversation.
For now, OpenAI is testing the system in a limited set of commercial use cases, and only in English-speaking markets. The company plans to use the results to guide a broader rollout at a later stage.
Beta Features and User Controls
Early testing indicates that OpenAI is exploring different ways to display advertisements within ChatGPT, while keeping paid users ad-free. The company said users on free tiers will have controls over ad personalisation, and that advertising will not influence ChatGPT’s responses. OpenAI added that user conversations would not be shared with advertisers.
Users can switch off personalised ads by opting out of memory, and paying subscribers will not see ads at all. That leaves the free version as a starting point for users who may later upgrade.
The company is expected to expand the advertising program gradually based on feedback from early tests.
Revenue Strategy Amid Competition
OpenAI is setting ambitious revenue goals for its advertising push, as analysts say ads could unlock a significant new revenue stream from ChatGPT’s large user base. Unlike traditional search ads, OpenAI plans to make money from ads shown alongside direct, AI-generated answers. Rivals such as xAI’s Grok have not yet introduced advertising.
The rollout is expected to happen in stages. A limited beta is planned for early in the year, followed by an international expansion later on. The company has not shared details about future advertising integrations.
As the system scales, regulators are expected to take a close look at how advertising works inside AI responses and whether it raises new ethical or consumer protection concerns.
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