ChatGPT ads arrive for free users as OpenAI tests new revenue model amid industry scrutiny

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OpenAI has begun testing ads in ChatGPT for free and Go subscription users in the US, marking a major shift in its business model. The move drew immediate criticism from rival Anthropic, which aired Super Bowl commercials mocking AI advertising. While OpenAI promises ads won't influence responses or compromise privacy, consumer research shows 83% of users will tolerate ads for free access.

OpenAI Launches ChatGPT Ads for Free and Go Tier Users

OpenAI began rolling out ChatGPT ads on Monday, February 9, marking the first time advertisements have appeared in the popular AI chatbot for US users

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. The ads target users on Free and Go subscription tiers, with the ChatGPT Go plan priced at $8 per month and introduced globally in mid-January

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. Subscribers on paid plans including Plus, Pro, Business, Enterprise, and Education tiers will not see ads

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. The company emphasizes that ads for free users appear as sponsored sections at the bottom of results, clearly labeled and visually separated from organic content. This represents a significant evolution in the AI chatbot's business model as OpenAI seeks sustainable revenue streams to cover development costs and infrastructure expenses

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Source: Axios

Source: Axios

Balancing Monetization with User Experience and Privacy

OpenAI has attempted to address user privacy concerns by stating that conversations with ChatGPT remain private from advertisers and that ads do not influence the chatbot's answers

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. The company says ads are personalized based on conversation topics, past chats, and previous ad interactions—for instance, users researching recipes might see ads for grocery delivery services or meal kits

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. Advertisers receive only aggregate information about ad performance, such as views and clicks, without access to user data

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. Users maintain control over their ad experience through settings that allow them to view interaction history, dismiss ads, share feedback, and manage ad personalization

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. OpenAI also confirmed that ads won't be shown to users under 18 or placed near sensitive topics like health, politics, or mental health

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. For those seeking to avoid ads entirely without paying, there's an opt-out option, though it comes with reduced message limits.

Source: Inc.

Source: Inc.

Anthropic's Ad-Free Campaign and Industry Competition

The introduction of ads in AI chatbots has intensified competition in the AI industry, with Anthropic launching an ad-free campaign during the Super Bowl that directly mocked OpenAI's advertising plans

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. Anthropic's commercials, titled "Betrayal, Deception, Treachery, and Violation," featured glassy-eyed actors playing AI chatbots delivering advice alongside poorly targeted ads, with the tagline "Ads are coming to AI. But not to Claude"

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. Sam Altman responded sharply to the campaign, calling the ads "dishonest" and labeling Anthropic an "authoritarian company"

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. Social listening data from Meltwater found that Anthropic's ads garnered more positive sentiment, with the humor resonating with consumers, while chatter around OpenAI's approach was more critical

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. However, industry analysts suggest Anthropic's ad-free status may be temporary, as answer engines and large language models face mounting pressure to adopt alternative funding models to subsidize costs

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Source: Seeking Alpha

Source: Seeking Alpha

Consumer Response and Long-Term Implications

Despite concerns about AI advertising, consumer research reveals surprising tolerance for ads in exchange for free access. A Forrester survey of 409 answer engine users found that 83% said they'd continue using free tiers despite the introduction of ads

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. Only 6% indicated they would switch to a paid tier to avoid advertisements

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. The research suggests that ad-avoidant users will likely cause a short-term pullback, breaking their answer engine habit or substituting ad-free alternatives, while power users will stick around due to their evolved search and work habits

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. According to a source close to the situation, OpenAI expects ads to make up less than half of its revenue long term, with brands committing at least $200,000 each to participate in the beta

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. In an internal memo, Sam Altman told employees that ChatGPT is "back to exceeding 10% monthly growth," building on the 800 million weekly users reported last October

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. OpenAI emphasizes that this initial phase is a test-and-learn opportunity, with user feedback shaping how ads are refined and potentially expanded

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. The company's approach will likely influence how other AI companies think about monetization and the role of advertising in conversational AI tools, though questions remain about whether ads will truly remain separate from the chatbot's core functionality as costs continue to rise.

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