9621 Agnes Crossing, Lake Suzanneview, New Mexico Island 84604-9295.
ChatGPT maker OpenAI is toying with the idea of adding advertising to its AI products, although there is still disagreement among executives. According to the Financial Times, OpenAI
ChatGPT maker OpenAI is toying with the idea of adding advertising to its AI products, although there is still disagreement among executives.
According to the Financial Times, OpenAI is said to be exploring the possibility of adding advertising to its AI products. The ChatGPT creator is currently in the process of restructuring from a non-profit to a for-profit organization. Sarah Friar, chief financial officer at OpenAI, told the Financial Times that OpenAI is considering an advertising model and intends to “think carefully about when and where we implement advertising.”
But there are disagreements among OpenAI executives over what ads might look like on their platforms, according to two people familiar with the matter.
OpenAI plans to transition from a nonprofit to a for-profit organization next year. The current structure is quite complex: a nonprofit oversees a for-profit arm, a holding company, and another for-profit entity. This often leads to frustration among investors and confusion among employees working on a commercial product.
Of course, a for-profit organization must generate revenue and make a profit. Training new models is associated with high costs. For this reason, AI startups are looking for ways to commercialize their technology to raise funding.
In another recent interview with the Financial Times, Friar said the ChatGPT maker is targeting one billion users next year. They are focusing on new AI agents, infrastructure and partnerships to realize the growth spurt. OpenAI recently completed a funding round and is currently valued at $150 billion.
OpenAI is said to have hired advertising talent from rivals such as Meta and Google, people familiar with the matter told the Financial Times and an FT analysis of LinkedIn accounts. Friar: “Our current business is experiencing rapid growth and we see significant opportunities within our existing business model. While we are open to exploring other revenue streams in the future, we have no active plans to pursue advertising.”
Friar brings extensive advertising experience along with Kevin Weil, Chief Product Officer at OpenAI. “Weil comes from Instagram and knows how advertising works,” says Friar. While advertising is a logical step to increase revenue, there is still disagreement among OpenAI executives. According to two people with knowledge of the discussion, there is still no clarity within the team about what their platform might look like.
Source: IT Daily
As an experienced journalist and author, Mary has been reporting on the latest news and trends for over 5 years. With a passion for uncovering the stories behind the headlines, Mary has earned a reputation as a trusted voice in the world of journalism. Her writing style is insightful, engaging and thought-provoking, as she takes a deep dive into the most pressing issues of our time.
