OpenAI is analyzing the possibility of including advertising on its most popular artificial intelligence (AI) platforms, according to a report from the Financial Times. Sarah Friar, the company’s financial director, has indicated that the incursion of solutions such as ChatGPT or DALL-E in the advertising sector would be part of a strategy to increase the firm’s income. Despite this, he clarifies that the proposal is still in a very early evaluation phase.
Friar adds that the product development team is “thinking carefully” about how to approach integrating ads into OpenAI’s most widely used AI developments. One of the aspects that causes the most concern is the probable rejection by users. The executive states that OpenAI’s business “is experiencing rapid growth. “While we are open to exploring other sources of income in the future, at this time, we do not have active projects to immediately offer advertising services,” he noted.
Could OpenAI dominate the digital advertising business?
However, the Financial Times ensures that the organization led by Sam Altman has begun to recruit advertising specialists with work history at firms such as Google and Meta. Both companies currently dominate the digital advertising industry. The information suggests that trading interventions would be displayed in the free version of ChatGPT and DALL-E. The measure would seek monetize the activity of the almost 250 million weekly users registered by the popular chatbot.
The majority of OpenAI’s revenue comes from its ChatGPT and DALL-E subscription plans. Commercializing the most advanced APIs of your AI models also generates profits. However, analysts assure that these benefits are insufficient to cover the firm’s economic needs. Mohit Pandey, media columnist Analytics Indiasaid last year that the Californian corporation needed to establish mechanisms to increase its funds and avoid bankruptcy. He argued that the operating costs of the popular bot smart and increasing competition in the market would be affecting the company’s financial performance.
OpenAI raised $6.6 billion in its latest funding round. Its private valuation reached $157 billion. To maintain resources, it is forced to become a for-profit organization. Under this structure, the adoption of an advertising model would be one of the most logical steps.
In October, the business entity presented ChatGPT Search, a search engine on-line powered by AI. Experts suggest the feature has the potential to undermine the business of Google, which currently controls about 90% of internet searches. The position has allowed it to dominate search engine advertising revenue. Some research indicates that this leadership is at risk because the quality of Google Search results has drastically reduced in recent years. The rise of chatbots smart is also a factor. At the end of 2023, compared to 2022, Google Search traffic decreased 0.4%, while Gemini, Copilot and ChatGPT increased 2, 8 and 4%, respectively.
The truth is that ChatGPT’s entry into the advertising business could be further away than most expect. Sam Altman has disagreed with this. “As a personal bias, I hate ads. I’m not saying OpenAI will never consider them, but I don’t like them in general. Adding ads and artificial intelligence is particularly disturbing to me”, he explained at a recent event at Harvard University.
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