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ChatGPT With Ads? OpenAI Explores New Business Model to Cover Its High Costs

OpenAI CFO Sarah Friar tells the FT that an ad-based model is under consideration, though she later followed that up to say, 'We have no active plans to pursue advertising.'

 & Michael Kan Principal Reporter

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ChatGPT's minimalist style is part of its appeal. Invasive ads do not crowd out your queries, but that might change as OpenAI looks to generate more revenue.

The company is considering an ad-based model, OpenAI CFO Sarah Friar told the Financial Times. But she stressed that the company will be "thoughtful about when and where we implement" the ads. Perhaps fearing backlash, Friar issued a statement after the interview: "While we’re open to exploring other revenue streams in the future, we have no active plans to pursue advertising.”

OpenAI mainly earns money through its paid ChatGPT Plus tier and its API, which lets third-party developers build apps around the company’s AI products. But despite a projected $3.7 billion in sales for 2024, OpenAI might burn through an estimated $5 billion in cash this year thanks to server costs and paying the hefty salaries of its employees.

The company is also restructuring to become a for-profit company and venturing into online search. The FT adds that OpenAI has hired advertising talent from top tech firms, including Meta and Google. So it may only be a matter of time before ads debut on ChatGPT. 

On the downside, any expansion into ads will raise questions about privacy since companies often collect and mine user details to power targeted advertising. In the meantime, Friar added in her statement: “Our current business is experiencing rapid growth, and we see significant opportunities within our existing business model.”

About Our Expert

Michael Kan

Michael Kan

Principal Reporter

My Experience

I've been a journalist for over 15 years. I got my start as a schools and cities reporter in Kansas City and joined PCMag in 2017, where I cover satellite internet services, cybersecurity, PC hardware, and more. I'm currently based in San Francisco, but previously spent over five years in China, covering the country's technology sector.

Since 2020, I've covered the launch and explosive growth of SpaceX's Starlink satellite internet service, writing 600+ stories on availability and feature launches, but also the regulatory battles over the expansion of satellite constellations, fights with rival providers like AST SpaceMobile and Amazon, and the effort to expand into satellite-based mobile service. I've combed through FCC filings for the latest news and driven to remote corners of California to test Starlink's cellular service.

I also cover cyber threats, from ransomware gangs to the emergence of AI-based malware. In 2024 and 2025, the FTC forced Avast to pay consumers $16.5 million for secretly harvesting and selling their personal information to third-party clients, as revealed in my joint investigation with Motherboard.

I also cover the PC graphics card market. Pandemic-era shortages led me to camp out in front of a Best Buy to get an RTX 3000. I'm now following how the AI-driven memory shortage is impacting the entire consumer electronics market. I'm always eager to learn more, so please jump in the comments with feedback and send me tips.

The Best Tech I've Had:

  • My first video game console: a Nintendo Famicom
  • I loved my Sega Saturn despite PlayStation's popularity.
  • The iPod Video I received as a gift in college
  • Xbox 360 FTW
  • The Galaxy Nexus was the first smartphone I was proud to own.
  • The PC desktop I built in 2013, which still works to this day.

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