OpenAI Begins Testing Ads in ChatGPT: Monetizing Free Users
OpenAI announced on January 16 that it will begin testing ads in ChatGPT over the next several weeks. This long-anticipated move could transform the company’s popular chatbot into a significant revenue generator.
How Ads Will Appear
Ads will be displayed as banners at the bottom of ChatGPT’s responses. For example, asking about places to visit in Mexico could result in relevant travel ads appearing. Ads will be clearly labeled and separated from the conversation history.
Fidji Simo, OpenAI’s CEO of Applications, stated in a blog post: “Our enterprise and subscription businesses are already strong. We believe in having a diverse revenue model where ads can play a part in making intelligence more accessible to everyone.”
Who Will See Ads
Ads will only be shown to:
- Logged-in adult users on the free tier
- ChatGPT Go subscribers ($8/month low-cost subscription)
Ads will not appear for:
- Plus, Pro, Business, and Enterprise plan subscribers
- Users under 18 years old
User Data Protection
OpenAI emphasizes that ChatGPT’s responses will not be influenced by ads, and user data will “never” be sold to advertisers. Additionally, ads will not appear near certain topics including politics, health, and mental health.
Users will have control over their ad experience, including the ability to dismiss ads, see explanations for why specific ads are shown, and turn off personalization.
The Business Case
This decision comes amid challenging financials for OpenAI. The company reported approximately $8 billion in losses during the first half of 2025, and only about 5% of ChatGPT’s 800 million weekly active users are paid subscribers.
CEO Sam Altman has previously expressed concerns about advertising, saying in a 2024 interview that he “hates” ads and finds combining them with AI “uniquely unsettling.” However, by 2025, he softened his stance, saying he expected OpenAI to “try ads at some point.”
Industry Implications
ChatGPT’s advertising rollout could have significant implications for the broader AI industry. According to eMarketer projections, AI-driven search advertising spending in the United States will surge from $1.1 billion in 2025 to $26 billion by 2029.
Internal OpenAI documents project that free user monetization will generate $1 billion in 2026, scaling to nearly $25 billion by 2029.