OpenAI Reportedly Weighing Ad Revenue Model in Addition to AI Products

Will OpenAI combine advertising with its artificial intelligence (AI) offerings?

It’s something the company is considering as it searches for new revenue streams, Chief Financial Officer Sarah Friar told the Financial Times (FT) in an interview published Monday (Dec. 2).

Friar said the tech startup is considering an advertising model, adding that its goal for ads was to be “thoughtful about when and where we implement them.”

The company, which was valued at $150 billion following a $6.6 billion funding round in October, has been hiring advertising experts from the likes of Google and Meta, the report said, citing sources familiar with the matter and the FT’s analysis of LinkedIn accounts.

Friar, a veteran of firms such as Square and Salesforce, said the company has a wealth of advertising experience between herself and Kevin Weil, OpenAI’s chief product officer.

Weil oversaw the creation of ad-supported products at tech platforms such as Instagram and X.

“The good news with Kevin Weil at the wheel with product is that he came from Instagram. He knows how this [introducing ads] works,” said Friar.

However, Friar later clarified the company’s advertising plans in a statement to the FT after the interview: “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.”

The FT report notes that OpenAI is increasing efforts to pull revenue from products like its AI-powered search engine to capitalize on its dominant position in the AI sector. A smaller competitor, Perplexity, has begun piloting advertising in its AI-powered search engine.

Speaking with PYMNTS soon after Perplexity’s plans were reported in August,  Caitlin Halpert, vice president of growth at marketing agency Journey Further, said that AI platforms could seamlessly integrate ads without sacrificing user experience.

“I can see ads blending in nicely with how the platform works today,” Halpert said, noting that ads could appear alongside source documents in Perplexity’s interface, while also warning of potential difficulties.

“The primary challenge will likely be ensuring users can clearly distinguish between ads and legitimate sources, maintaining the integrity of the search experience,” she said.

Bringing ads to AI search platforms could transform competition in the digital advertising market. Halpert said advertisers should work on adapting their strategies, stressing the need to “prioritize earned media coverage and create content that deeply resonates with users, rather than merely optimizing for algorithms.”