OpenAI is turning to a new revenue model for its popular chatbot, ChatGPT. Because revenue from paid subscriptions hasn’t met expectations, the company is considering leveraging advertising and sponsorships.

According to the Financial Times, ChatGPT users are estimated to number approximately 800 million, but only about 5% of them have paid subscriptions. It also states that OpenAI’s annual revenue is approximately $13 billion, approximately 70% of which comes from its paid user base. Valuable around $500 billion, the company plans to spend billions of dollars in the coming period but has yet to find a stable, robust revenue stream.

What are ChatGPT’s Plans?

• OpenAI has opened internal discussions on displaying ads on the platform as a potential option. Some employees report receiving feedback suggesting that users believe their responses are being sponsored.
• Experienced personnel have also been transferred to ad-focused business models. The company retains approximately 630 former Meta employees, representing approximately 20% of its total staff.
• The company’s official statement states that it is currently reviewing advertising with caution and appropriate timing.

Subscription Alternatives and Global Expansion

In addition to its advertising model, OpenAI has diversified its subscription offerings. For example, a more affordable plan called Go has reportedly been launched in some European countries. This is a significant step the company is taking to appeal to a broader user base and increase its paid subscriber base.

No official release date or finalized version of the advertising model has yet been announced.

If advertising becomes widespread, maintaining user expectations and the company’s perception of integrity will be critical. Ad revenue, along with paid subscription revenue, could become a key component of the company’s sustainable growth strategy. Before the ad model is implemented, significant preparations need to be made in terms of infrastructure, user response, and brand trust.

OpenAI is seriously considering switching to ads on ChatGPT. The inability of paid subscriptions alone to meet growth has led the company to explore new revenue models. While a clear implementation hasn’t yet been implemented, there are strong signs of a shift to an advertising-focused business model.