For many people, ChatGPT has become a go-to tool for everything from brainstorming ideas to drafting emails. It’s the fastest-growing software product ever, and OpenAI wants to reach the long-awaited profitability as soon as possible. With that kind of scale and goals comes a big question: is it only a matter of time before we start seeing ads on ChatGPT?

While it might seem inevitable, the head of ChatGPT at OpenAI, Nick Turley, recently suggested in an interview with The Verge that the company is taking a very cautious approach to monetization. In fact, they are incredibly confident in its current model and will prioritize subscriptions over advertising integration. However, business models such as referrals when the users are searching for details about a particular product are also on the table.

ChatGPT’s business model will not involve ads anytime soon—for now

When ChatGPT first launched its paid tiers, it was primarily to manage the massive demand on its servers. But what started as a practical solution has evolved into a long-term business strategy. And now, it seems that the firm believes in it as a model perfectly aligned with its users. Turley noted that new subscribers are sticking with the service just as well as the early adopters. This is a rare and promising sign for a maturing product.

This tells us that people aren’t just using the AI-powered platform; they’re forming a strong, lasting attachment to it. Users’ response to the possibility of removing an older model surprised even OpenAI itself, Turley revealed.

So, where does that leave ads? Turley acknowledged the possibility of considering an indirect monetization model in the distant future. However, he was very clear on the conditions. Any ad-based model would have to preserve the core value of the product. That is, delivering personalized, unbiased answers. The company understands that user trust is everything. A pop-up ad or a sponsored result could easily compromise that trust, and for a tool that relies on a human-like conversation, that risk is simply too high.

Models such as subscription or referrals seem to have an advantage

Instead, a more likely monetization path seems to be through commerce. For a while now, ChatGPT has been able to offer product recommendations. And currently, the company is exploring a referral-based model where it could take a small cut from transactions. Think of it like a smart, automated shopping assistant. This approach feels more natural and less intrusive than traditional advertising, keeping the focus on providing value to the user first.

Interestingly, a May report claimed that Google was already working on an ad injection service for AI chatbots—like ChatGPT. The Mount View giant is already the largest AdTech provider on the internet. Will it also retain its leader role as an advertising provider for AI platforms? And will OpenAI turn to its services? We’ll have to wait and see.
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Source: ndroidheadlines.com