Since ChatGPT\u2019s launch in 2022, OpenAI\u2019s valuation has soared to $500 billion in funding rounds \u2013 higher than any other private company. Some expect it could go public with a trillion-dollar valuation.<\/p>\n
But the ChatGPT maker burns through cash at a furious rate, mostly on the powerful computing required to deliver its services.<\/p>\n
With its move, OpenAI brings its business model closer to tech giants Google and Meta, which have built advertising empires on the back of their free-to-use services.<\/p>\n
Unlike OpenAI, those companies have massive advertising revenue to fund AI innovation \u2013 with Amazon also building a solid ad business on its shopping and video streaming platforms.<\/p>\n
\u201cAds aren\u2019t a distraction from the gen AI race; they\u2019re how OpenAI stays in it,\u201d said Jeremy Goldman, an analyst at Emarketer.<\/p>\n
\u201cIf ChatGPT turns on ads, OpenAI is admitting something simple and consequential: the race isn\u2019t just about model quality anymore; it\u2019s about monetising attention without poisoning trust,\u201d he added.<\/p>\n
OpenAI\u2019s pivot comes as Google gains ground in the generative AI race, infusing services including Gmail, Maps and YouTube with AI features that \u2013 in addition to its Gemini chatbot \u2013 compete directly with ChatGPT.<\/p>\n
To address concerns about its pivot into advertising, OpenAI pledged that ads would never influence ChatGPT\u2019s answers and that user conversations would remain private from advertisers.<\/p>\n
\u201cAds do not influence the answers ChatGPT gives you,\u201d the company stated. \u201cAnswers are optimised based on what\u2019s most helpful to you. Ads are always separate and clearly labelled.\u201d<\/p>\n
In an apparent reference to Meta, TikTok and Google\u2019s YouTube \u2013 platforms accused of maximising user engagement to boost ad views \u2013 OpenAI said it would \u201cnot optimise for time spent in ChatGPT\u201d.<\/p>\n
\u201cWe prioritise user trust and user experience over revenue,\u201d it added.<\/p>\n
The commitment to user wellbeing is a sensitive issue for OpenAI, which has faced accusations of allowing ChatGPT to prioritise emotional engagement over safety, allegedly contributing to mental distress among some users.<\/p>\n
– AFP<\/p>\n","protected":false},"excerpt":{"rendered":"Since ChatGPT\u2019s launch in 2022, OpenAI\u2019s valuation has soared to $500 billion in funding rounds \u2013 higher than…\n","protected":false},"author":2,"featured_media":164744,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[3113,3118,365,696,9556,363,364,28246,9473,4036,24004,802,16123,5345,9557,49720,111,139,69,620,10903,7493,27950,42370,145,11408,61,4518,139929,1533],"class_list":["post-236861","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ads","tag-advertisements","tag-ai","tag-announced","tag-artificial","tag-artificial-intelligence","tag-artificialintelligence","tag-begin","tag-chatbot","tag-chatgpt","tag-coming","tag-costs","tag-cover","tag-increase","tag-intelligence","tag-introducing","tag-new-zealand","tag-newzealand","tag-nz","tag-openai","tag-popular","tag-revenue","tag-seeks","tag-soaring","tag-technology","tag-testing","tag-to","tag-weeks","tag-wildly","tag-will"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/236861","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=236861"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/236861\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/164744"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=236861"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=236861"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=236861"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}