OpenAI Will Not Run Ads for Now, CEO Sarah Friar Reveals Transition Plans

OpenAI CEO Sarah Friar has announced that the company will not run ads on its platforms for the time being as it transitions to a for-profit model.

The CEO of OpenAI, Sarah Friar, told The Register that the company has decided not to put ads on its platforms, at least for now. Users who are accustomed to OpenAI’s lofty ideals from its early years may not like the change, but it makes sense given reports that the AI developer is attempting to restructure as a for-profit entity.

Some people pay to use OpenAI’s services, but the company’s business leaders may be tempted to add ads to some of its services because it is the leader in generative artificial intelligence.

“Rapid growth is happening in our current business, and we see big opportunities in the way we do business now.” Friar told us in a statement, “We’re open to looking into other ways to make money in the future, but we have no plans to go after advertising right now.”

The Financial Times reported Friar’s earlier statement, which differs slightly. The CFO told the newspaper that OpenAI would be “thoughtful about when and where we implement them.”

Given the reported $157 billion in investments in OpenAI, it’s difficult to imagine the company not looking for ways to increase revenue. Google, for example, makes most of its money from ads.

Given the popularity of OpenAI’s ChatGPT bot and the launch of the SearchGPT AI search engine, it makes sense for the company to boost its revenue through ads, even if users aren’t accustomed to them.

Friar stated that no plans were currently in action, but OpenAI has hired individuals with marketing skills and backgrounds in building ad platforms. In June 2024, OpenAI named Kevin Weil as Chief Product Officer.

Before that, he had worked for Instagram and Twitter on product and marketing. When Shivakumar Venkataraman turned 30 in May 2024, he had already worked at Google for more than 20 years. He had previously worked for the company for a long time on ads in its services.

OpenAI Faces Leadership Shakeup as Top Executives Depart

OpenAI has let go of several well-known employees in the past few months. Mira Murati, the CTO, said she would be leaving in September 2024, along with two other executives, Bob McGrew and Barret Zoph. The company temporarily removed Sam Alton as CEO in November 2023. He is now one of the last two founders of the company.

When The Register asked Gartner analyst Jason Wong about OpenAI in September, he said, “It’s clear that Sam’s vision is being used to rebuild the company now that the co-founders and high-profile engineering leaders have left.” His manifesto and the change to a for-profit entity also support his way of seeing the business.

OpenAI continues to allocate significant funds from investors towards the development of AI models. This method doesn’t work with a for-profit model, and investors will want a return on their money at some point, even if Elon Musk is trying to stop OpenAI from becoming a for-profit company.