OpenAI is reportedly testing ads inside ChatGPT. New code in its Android beta suggested that advertising may be coming to the product for the first time. Computer Engineer, Tibor Blaho spotted new code that referenced an “ads feature,” “search ad,” “search ads carousel,” and “bazaar content.” His post on X highlighted that these strings appeared in ChatGPT version 1.2025.329, which suggests the company is building an ad-serving system inside the app.

Another X user shared evidence that he had seen a promotional card during a chat about “Elon on Nikhil’s podcast.” This gives advertisers an early sign that OpenAI is experimenting with how ads might appear inside a live conversation.

A shift from OpenAI’s earlier position on ads

OpenAI leaders once insisted that ChatGPT would avoid ads. In late 2024, then-CFO Sarah Friar said the company was open to exploring new revenue streams but had no active plans to introduce advertising. Around the same time, Sam Altman described ads as a “last resort” and said he preferred subscription revenue because it did not rely on advertiser influence.

Over the last few months, that stance has changed. In July, Altman said the company had not built an ad product yet but also said he was “not totally against it.” He compared ads on platforms like Instagram and noted that if OpenAI ever introduced ads, it would require a lot of care. In a recent podcast, he added, “I expect it’s something we’ll try at some point,” while admitting that he did not know what the ads would look like. According to him, prioritising paid listings over better answers could cause serious trust problems.

Why OpenAI may be moving toward ads

In March, OpenAI secured a major funding round, $40 billion led by SoftBank Group and others, which raised its valuation to about $300 billion. But the company faces rising operational costs for running large-scale AI systems. OpenAI expects large expenditures. According to The Information, OpenAI projects its total cash burn between 2025 and 2029 will reach roughly $115 billion. That represents a dramatic increase over prior forecasts and reflects massive investments in compute, data centers, custom chips, and infrastructure.

This number explains why OpenAI might turn to ad monetization for free-tier users. Subscriptions and enterprise contracts may not be enough to cover rising costs. Introducing ads to ChatGPT could offer a way to monetize the massive free user base while still keeping paid tiers ad-free. According to reporting earlier this year, internal documents projected that “free user monetization” could generate up to $1 billion in 2026 and grow significantly in the years that follow.

OpenAI’s strategy to compete with search engines and AI assistants

If OpenAI moves forward, ChatGPT would join a growing list of AI systems shaping how ad inventory appears inside conversational interfaces. The company is aiming to compete more directly with major search ads platforms like Google. 

Google is already boosting its efforts to remain strong in this market. The company recently expanded ad placements in its AI Mode to more users, mixing shopping ads and traditional search ads directly into generated answers. Microsoft’s Copilot includes ads in chats related to commercial topics. Perplexity uses sponsored suggestions and partner content inside its AI responses.

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