Try GOLD - Free
OPENAI CONSIDERS ADS FOR CHATGPT TO DRIVE REVENUE GROWTH
AppleMagazine
|May 30, 2025
Imagine asking ChatGPT for a recipe and getting a sponsored suggestion for a kitchen gadget alongside the ingredients list.
-
That scenario edged closer to reality earlier this week when OpenAI, the AI pioneer behind ChatGPT, signaled it is exploring advertising as a new revenue stream to offset its hefty operational costs.
With a $157 billion valuation and $3.7 billion in 2024 revenue, the company faces a projected $5 billion loss, prompting a strategic pivot toward a business model familiar to tech giants like Google and Meta. For users, advertisers, and investors in the $2 trillion AI market, this potential shift could reshape the ad-free ChatGPT experience, balancing accessibility with financial sustainability.
The exploration, revealed by OpenAI CFO Sarah Friar in a Financial Times interview, comes as the company hires ad experts from Google and Meta, hinting at a future where sponsored content funds its AI ambitions.
While no ads are imminent, the move reflects OpenAI's need to diversify beyond subscriptions and licensing amid fierce competition.
FINANCIAL PRESSURES FUEL AD EXPLORATIONOpenAI's financial outlook is strained, with $3.7 billion in 2024 revenue dwarfed by a projected $5 billion loss, driven by soaring server costs and salaries for its 1,500 employees. The company's income stems from its $20-per-month ChatGPT Plus subscription, enterprise offerings like ChatGPT Enterprise and Team, and API licensing for developers, but these fall short of covering expenses.
This story is from the May 30, 2025 edition of AppleMagazine.
Subscribe to Magzter GOLD to access thousands of curated premium stories, and 10,000+ magazines and newspapers.
Already a subscriber? Sign In
MORE STORIES FROM AppleMagazine
AppleMagazine
NETFLIX REMOVES MOBILE CASTING SUPPORT ON NEWER SMART TV MODELS
Netflix has begun phasing out mobile casting support on newer smart TV models, altering how users send content from their phones to the Netflix app on select televisions.
3 mins
December 05, 2025
AppleMagazine
NVIDIA'S $2 BILLION SYNOPSYS PARTNERSHIP EXPANDS ITS ROLE ACROSS THE SEMICONDUCTOR DESIGN STACK
NVIDIA has deepened its position inside the chip-design ecosystem through a new $2 billion partnership with Synopsys, a move that folds advanced GPU acceleration and Al-driven automation into the software tools used by semiconductor companies to create next-generation processors.
5 mins
December 05, 2025
AppleMagazine
REPORT HIGHLIGHTS UNCERTAINTY AROUND RUMORED LINKS BETWEEN CHATGPT AND APPLE HEALTH
A recent wave of online speculation has suggested that Apple could be preparing deeper ties between ChatGPT and health-related features on its platforms, but new reporting indicates there is no clear evidence supporting those claims.
3 mins
December 05, 2025
AppleMagazine
OLDER TRACKS SET TO DOMINATE APPLE'S 2025 YEAR-END MUSIC LISTS AS INDUSTRY DYNAMICS SHIFT
Apple's upcoming year-end music rankings are expected to be led heavily by older tracks, reflecting a pattern reinforced across streaming platforms throughout 2025.
5 mins
December 05, 2025
AppleMagazine
NETFLIX PITCHES BUNDLE WITH HBO MAX AS “PRO-CONSUMER”
Netflix is telling regulators and counterparties that its proposed acquisition of Warner Bros Discovery's studios and streaming unit would lower streaming bills for many households by paving the way for a discounted Netflix-HBO Max bundle, according to people familiar with the talks.
5 mins
December 05, 2025
AppleMagazine
VALVE'S LONG-RUNNING ARM BET PUTS STEAM ON A PATH TOWARD PHONES, TABLETS, AND NEW MOBILE HARDWARE
Valve's recent hardware announcements placed most of the public focus on the Steam Machine revival, but a quieter detail embedded in the company’s new standalone VR headset points toward a far broader shift.
5 mins
December 05, 2025
AppleMagazine
UBER LAUNCHES ROBOTAXIS IN DALLAS THROUGH NEW PARTNERSHIP WITH AVRIDE
Uber has begun offering robotaxi rides in Dallas, introducing autonomous vehicles into its core ride-hailing service for the first time in the city.
3 mins
December 05, 2025
AppleMagazine
APPLE PREPARES FOUR NEW MACBOOK MODELS FOR 2026 AS ITS SILICON ROADMAP EXPANDS
Apple is preparing to introduce four new MacBook models in 2026, according to new reporting that outlines one of the company’s most extensive laptop refresh cycles since the start of the Apple Silicon transition.
4 mins
December 05, 2025
AppleMagazine
AMAZON MUSIC AND APPLE MUSIC ROLL OUT YEAR-END WRAP-UPS AS STREAMING PLATFORMS PREPARE FOR A BUSY HOLIDAY SEASON
Amazon Music and Apple Music have both released their annual listening summaries, giving subscribers detailed breakdowns of their most-played tracks, genres and artists as the year approaches its final stretch.
5 mins
December 05, 2025
AppleMagazine
LANDSPACE'S ZHUQUE-3 REACHES ORBIT AS BOOSTER RECOVERY TEST FALLS SHORT IN KEY MOMENT FOR CHINA'S COMMERCIAL SPACE SECTOR
LandSpace, one of China’s most prominent private aerospace firms, completed a major step forward in the development of reusable launch systems on Wednesday, successfully sending its Zhuque-3 rocket to orbit but falling short in the booster’s attempted return.
4 mins
December 05, 2025
Listen
Translate
Change font size