TL;DR
OpenAI is rolling out advertisements in ChatGPT for free and low-cost tier users in the US. The banner-style ads will appear at the bottom of responses and be contextually relevant to user prompts, though premium subscribers will remain ad-free.
A Strategic Pivot for OpenAI
OpenAI has announced it will begin testing advertisements within its ChatGPT chatbot, marking a notable shift in revenue strategy for the AI giant. The ads will initially roll out to US users of the free tier and the recently launched low-cost Go subscription, whilst Plus, Pro and Enterprise subscribers will continue to enjoy an ad-free experience.
CEO Sam Altman, who previously described advertising as a “last resort”, acknowledged the move by stating he was “hopeful a business model like this can work”. The decision comes as OpenAI continues to operate at significant losses, with reports suggesting the company lost approximately $8 billion in the first half of 2025.
How the Ads Will Work
The advertisements will appear in a banner format at the bottom of ChatGPT’s responses, clearly labelled and contextually relevant to user queries. For instance, a conversation about travel destinations might trigger holiday-related advertisements.
OpenAI has emphasised several safeguards:
- Chatbot responses will not be influenced by advertising
- Ads will not appear alongside sensitive topics including politics, health and mental health
- Users can learn why they’re seeing specific ads, dismiss them, and submit feedback
- No conversation data will be shared with advertisers
Looking Forward
This development reflects broader industry trends, with Google recently introducing personalised ads to its AI shopping tools. For UK businesses exploring AI chatbots, this signals that advertising-supported models may become increasingly common in the generative AI space, potentially offering cost-effective access to AI tools whilst raising questions about user experience and data privacy.