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regular-article-logo Thursday, 05 December 2024

OpenAI wants to explore advertising in its products

The Financial Times reports that the company is hiring ad talent away from its big tech rivals like Google and Meta

Mathures Paul Published 04.12.24, 07:46 AM
File picture of Sarah Friar, CFO of OpenAI

File picture of Sarah Friar, CFO of OpenAI

At some point, OpenAI had to consider an ads model and now that time has come. The company’s CFO Sarah Friar has said OpenAI plans to be “thoughtful about when and where we implement” ads.

The Financial Times reports that the company is hiring ad talent away from its big tech rivals like Google and Meta.

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At the moment even the free versions of OpenAI products are ad-free, which is made possible by easy access to cash. OpenAI’s valuation has skyrocketed to $157 billion.

In an interview with FT, Friar said the company had been weighing an ads model, though she did not mention a timeline.

“While we’re open to exploring other revenue streams in the future, we have no active plans to pursue advertising,” she said.

Friar pointed out that she and OpenAI chief product officer Kevin Weil have plenty of ad experience. “The good news with Kevin Weil at the wheel with products is that he came from Instagram,” she told the outlet. “He knows how this works.”

At the same time, she said: “Our current business is experiencing rapid growth and we see significant opportunities within our existing business model. While we’re open to exploring other revenue streams in the future, we have no active plans to pursue advertising.”

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