AI: OpenAI tests its ads in ChatGPT. RTZ #993
Not a surprise, but OpenAI is showing off its coming Ads driven monetization of ChatGPT. Following in the big footsteps of course of established giants like Google, Meta, Amazon and others.
And despite being poked fun at by ‘sibling’ arch-competitor Anthropic at the Superbowl earlier this weekend with its four spot-on, clever and effective counter-branding ads. It’s a notable moment in this AI Tech Wave.
In its post “Testing Ads in ChatGPT”, OpenAI solemnly notes:
“Today, we’re beginning to test ads in ChatGPT in the U.S. The test will be for logged-in adult users on the Free and Go subscription tiers. Plus, Pro, Business, Enterprise, and Education tiers will not have ads. Ads do not influence the answers ChatGPT gives you, and we keep your conversations with ChatGPT private from advertisers. Our goal is for ads to support broader access to more powerful ChatGPT features while maintaining the trust people place in ChatGPT for important and personal tasks. We’re starting with a test to learn, listen, and make sure we get the experience right.”
“We previously shared the principles that guide our approach for advertising in ChatGPT. This test puts those principles into practice so we can begin learning from real-world use.”
They go on to stress the ‘mission alignment’, ‘answer independence’, ‘conversation privacy’, ‘choice and control’, ‘long-term value’ of its ads approach, along with of course ‘what’s next’.
Axios provides broader context in “OpenAI Tests Ads in ChatGPT”:
“ChatGPT is testing ads for some U.S. users on both the free and Go subscription tiers, its most affordable offerings.”
“Why it matters: It could be the beginning of the end of ad-free ChatGPT.”
“What they’re saying: “Our goal is for ads to support broader access to more powerful ChatGPT features while maintaining the trust people place in ChatGPT for important and personal tasks,” an OpenAI spokesperson told Axios.”
“The company says ads will not influence ChatGPT’s answers, which it says will remain focused on what is “most helpful.”
“If a user asks about recipe ideas, the answer may be followed by a grocery delivery service ad, for example.”
“Ads won’t be shown to those who are predicted to be under 18, and are not eligible to appear near “sensitive or regulated topics like health, mental health or politics.”
There’s a lot of ChatGPT UI/UX engineering still going on:
“Zoom in: The ads you see will be shaped by what you’re discussing, your prior chats and any reactions you give to ads that you hide or engage with.”
“The company says it matches those details to ads without sharing them with advertisers, who “never see your personal details or conversations.”
“You can also clear your ad data, which it says “won’t affect your chats.”
“Users can opt out of ads by paying for ChatGPT Pro or Plus subscription plans.”
“The intrigue: Free and Go users can also opt out of ads in exchange for fewer daily free messages, OpenAI says.”
“Zoom out: To include ads in chats is a key sticking point among AI companies right now.”
“Anthropic promised it would remain ad-free alongside a Super Bowl ad that appeared to swipe at OpenAI’s ad promise.”
“Demis Hassabis, CEO of Google DeepMind, said at Davos that the ad launch from OpenAI felt early, noting that maybe they needed ads to bring in more revenue.”
OpenAI is doing this despite its recent internal ‘Code Red’ interruption post the launch of the latest version of Google Gemini AI:
“Between the lines: OpenAI declared a “code red“ moment in December amid increased competition, specifically from Google.”
“CEO Sam Altman instructed employees to focus solely on making ChatGPT better. If you’re going to focus on one thing, it has to make money at some point.”
“Cue the launch of ads.”
“What we’re watching: Whether ChatGPT Plus and Pro subscriptions will remain ad-free.”
Great question at the end. Google of course has a big edge in all this since billions of users are already used to ads in Google Search and increasingly in Google Gemini’s AI Overview and AI Mode products, soon to be distributed via Apple.
One should assume OpenAI’s 900 million+ monthly ChatGPT users will also get used to ads at this phase of the AI Tech Wave.
Despite Anthropic’s clever counter-branding around the same. Stay tuned.
(NOTE: The discussions here are for information purposes only, and not meant as investment advice at any time. Thanks for joining us here)