ChatGPT will use user conversations for advertising - Profitable strategy for $1.4 trillion infrastructure investment
OpenAI announced that it will test conversation-based ads within the free version for registered US adult users.
The company is also launching an $8 per month “Go” subscription tier that includes some enhanced capabilities, such as longer memory and more imaging capabilities, a lower price compared to its “Plus” ($20/month) and Pro ($200/month) subscriptions. “Go” subscribers will also receive ads, while Plus, Pro, and OpenAI business customers will not.
OpenAI CEO Sam Altman has previously expressed reservations about running ads on ChatGPT. But the move comes as OpenAI is urgently trying to generate more revenue from its 800 million monthly users to help it pay for $1.4 trillion in infrastructure spending over the next eight years. Altman said in November that the company expected to end 2025 with about $20 billion in annual revenue.
Advertising could be a profitable strategy for OpenAI, as using information from individuals' conversations with ChatGPT could generate ideal ads based on consumer interest.
OpenAI said that ads will not dictate ChatGPT's responses, and they do not plan to advertise on conversations with subtle or personal nuances. The company also said that it will not sell user data or conversations to advertisers and that they can disable ad personalization within the virtual platform.
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