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ChatGPT Free Tier Gets Targeted Ads
22 Jan
Summary
- OpenAI will test ads in ChatGPT's free version for US users.
- CFO Sarah Friar defends ads as democratizing AI access.
- Annualized revenue reached $20 billion in 2025.
OpenAI has announced plans to test targeted advertisements within the free version of its popular AI chatbot, ChatGPT, for select users in the United States. This marks a significant shift from its previous model of offering either free access or a paid subscription.
Sarah Friar, OpenAI's Chief Financial Officer, articulated the strategic rationale behind this decision at the World Economic Forum in Davos. She emphasized that the introduction of ads is essential for building a robust business model. Friar stated the company's core mission is to achieve artificial general intelligence (AGI) for the benefit of all humanity, irrespective of their ability to pay.
Friar also addressed concerns regarding the timing of the ad rollout, noting that ad models require significant scale to be effective. With ChatGPT boasting 800 million weekly active users, she believes the platform has surpassed the user base necessary for a viable advertising strategy. This development comes as OpenAI aims to justify its ambitious vision and substantial valuation, reporting that its annualized revenue had grown to $20 billion in 2025.
