ChatGPT tests ads as a new era of AI begins

Two days after Google insisted there are no current plans for ads in its Gemini AI app, OpenAI announced Friday that it is starting to test ads in ChatGPT.

OpenAI CEO of applications Fidji Simo said in a blog post that ads will begin appearing at the bottom of the chatbot’s answers for free users and for Go subscribers (who pay $8 a month) in the U.S. in the coming weeks, opening an important new source of revenue for the high-flying startup which has been valued by investors at $500 billion.

It’s a moment many in tech have long viewed as inevitable: Running frontier AI models is brutally expensive, burning through staggering amounts of computing power, electricity, and GPUs. Advertising’s revenue stream is hard to resist. OpenAI expects to generate “low billions” of dollars in revenue this year, and more each year thereafter, the FT reported on Friday citing an unnamed person “close to the company.”

While Google has so far held back from putting ads in its standalone Gemini chatbot app, the company has incorporated ads into the AI Overviews that appear in its online search results, a move viewed as essential as the company seeks to extend its $265 billion a year advertising business into the AI age.

OpenAI said in its blog post that the forthcoming ads will be clearly labeled, and that users’ conversations with ChatGPT would be kept private. “You need to know that your data and conversations are protected and never sold to advertisers,” the company said. “We need to keep a high bar and give you control over your experience so you see truly relevant, high-quality ads—and can turn off personalization if you want.” In addition, it said that ads will not influence ChatGPT’s answers, which it said “are optimized based on what’s most helpful to you.”

OpenAI emphasized that subscriptions remain its long-term priority, and said that the $20 per month Plus and $200 per month Pro subscriptions, as well as the Business Enterprise version of the product, will remain ad-free. “Our enterprise and subscription businesses are already strong, and we believe in having a diverse revenue model where ads can play a part in making intelligence more accessible to everyone,” the company wrote.

Still, the company doubled down on tying the introduction of ads with its overall mission to ensure that advanced general intelligence, or AGI, “benefits all of humanity,” Simo wrote.

In a separate blog post on Friday, OpenAI said that “ads support our commitment to making AI accessible to everyone by helping us keep ChatGPT available at free and affordable price points.”

This story was originally featured on Fortune.com