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Netflix famously backtracked on its stance toward ads. Now, OpenAI is following suit.
The AI pioneer announced that ads are coming to ChatGPT — less than two years after OpenAI CEO Sam Altman portrayed them as "a last resort."
"Ads plus AI is sort of uniquely unsettling to me," Altman said during an event at Harvard University in May 2024. "I kind of think of ads as a last resort for us for a business model."
Altman's softened stance since then underlines the massive change OpenAI has undergone in the last two years, and the company's embrace of advertising is a testament to just how expensive the AI race has become.
In June, the OpenAI CEO said he wasn't "totally against" ads, he just wanted to make sure OpenAI got the balance correct.
"We haven't done any advertising product yet. I kind of...I mean, I'm not totally against it," Altman said on OpenAI's podcast. "I can point to areas where I like ads. I think ads on Instagram, kinda cool. I bought a bunch of stuff from them. But I am, like, I think it'd be very hard to — I mean, take a lot of care to get right."
In October, Altman expressed a desire to make sure the company went about ads in the proper manner when asked about OpenAI's past criticisms that other tech companies made addictive products.
"We're definitely worried about this," Altman said in response to a question that expressed concern about the similarities of Sora, OpenAI's AI video app, and TikTok and the potential of ads. "I worry about it, not just for things like Sora and TikTok and ads in ChatGPT, which are maybe known problems that we can design carefully."
Meanwhile, Altman, former Instacart CEO Fidji Simo (who OpenAI hired as its CEO of applications in early 2025), and seemingly every other member of the company's C-suite have expressed an almost insatiable demand for more compute in interviews.
It's proven a costly endeavor. OpenAI now has roughly $1.4 trillion in spending commitments on data centers and related infrastructure, raising questions about how it plans to pay the bills without the benefit of the advertising businesses of its Big Tech competitors, like Google and Meta.
OpenAI also completed its restructuring into a more traditional for-profit, a move Altman said was designed to make it easier to attract future investments.
How the ads will work
As part of the announcement, OpenAI said that free and Go users of the popular AI chatbot would start seeing ads being tested "in the coming weeks."
Sharing details on the planned test, OpenAI said that ChatGPT's results "will not be influenced by ads," the ads will be clearly labeled, and chatbot conversations will remain private and not shared with advertisers.
— OpenAI (@OpenAI) January 16, 2026In the coming weeks, we plan to start testing ads in ChatGPT free and Go tiers.
We’re sharing our principles early on how we’ll approach ads–guided by putting user trust and transparency first as we work to make AI accessible to everyone.
What matters most:
- Responses in… pic.twitter.com/3UQJsdriYR
Paid users of OpenAI's Plus, Pro, Business, and Enterprise plans won't see the ads, the company said.
Simo, OpenAI's CEO of applications, who has previously spoken about her desire to get the ads balance correctly, wrote on X that the most important factor was "ads will not influence the answers ChatGPT gives you."
While Instacart launched ads during Simo's time leading the company, she has said OpenAI's approach would look different.
In November, Simo told Wired that the company would be "extremely respectful" of the deep well of user data OpenAI has when it came to launching ads.
"If we ever were to do anything, it would have to be a very different model than what has been done before," she said. "What I've learned from building ad platforms is that the thing people don't like about ads very often is not the ads themselves, it's the use of the data behind the ads."
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Steven Tweedie is a Deputy Executive Editor at Business Insider. He launched the Business News desk in early 2020 and helped grow it into the Trending and Tech News desk, a fast-paced reporting powerhouse that tackles the biggest business and tech stories of the day in an approachable way. He now oversees the Business News desk, Corporate team, and Weekend desk. He works out of the New York newsroom and helps train fellows and new hires at all experience levels in addition to his daily editing duties.He began his career covering app startups and gadgets on the Technology desk at BI. His past reporting and scoops have been cited or syndicated by publications including the WSJ, Associated Press, CNN, Bloomberg, The Guardian, and Forbes. He attended the University of Michigan, where he studied economics and writing, and now lives in Brooklyn.While passionate about editing and helping lead the newsroom's daily business coverage, he also puts on his reporting hat every now and then to chase down a scoop — so don't hesitate to reach out!Have a news tip? Email Steven from a non-work email at stweedie@businessinsider.comFollow him on X and Threads for the latest.Featured work:▲Leaked memo: Wayfair CEO tells employees to expect long hours 'blending work and life' (scoop) ▲ Magic Leap's CFO is stepping down after it was 'mutually decided' it was time for someone new (scoop)▲ 48 hours after raising $500 million, Magic Leap called the cops to say an employee had stolen $1 million (scoop)▲ A conversation with the father of virtual reality about the changing culture of Silicon Valley▲ The future of virtual reality is here▲ The first details on the executive shakeup planned for Yahoo once its deal with Verizon closes (scoop)▲ What it's like to log in to computers in North Korea, which run look-alike Mac software called 'Red Star 3.0'
Brent Griffiths is a senior reporter at Business Insider who covers AI and tech.Previously, he worked at the Washington Post as a researcher on Power Up and the Finance 202. He started his career at Politico where he worked on the web production team and covered breaking news. His passion for covering politics has only grown since he cut his teeth covering the presidential campaign as a student journalist. He's also contributed to the Almanac of American Politics.
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