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Welcome to our Wednesday "Bit-Size Update" on how the week started in the AI Industry.
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Bit-Size AI Update
OpenAI Rolls Out Ads in ChatGPT Free Tier
OpenAI began testing advertisements in ChatGPT on Monday for users on its free and low-cost Go subscription tiers, marking a significant shift in how the AI chatbot generates revenue.
The $8-per-month Go plan, introduced globally in January, will now include ads alongside the free tier. Users who pay for Plus, Pro, Business, Enterprise, or Education subscriptions will remain ad-free.
OpenAI attempted to preempt privacy concerns by emphasizing that ads won't influence ChatGPT's responses and that conversations remain private from advertisers. The company says ads will be matched to users based on conversation topics, chat history, and previous ad interactions. For example, someone researching recipes might see ads for grocery delivery or meal kits.
The announcement comes days after rival Anthropic mocked OpenAI's advertising plans in a series of Super Bowl commercials, showing glassy-eyed actors playing chatbots delivering advice alongside poorly targeted ads. OpenAI CEO Sam Altman called the commercials dishonest and labeled Anthropic an authoritarian company.
Users will have some control over the experience. They can dismiss ads, provide feedback, view why they saw a particular ad, and manage personalization settings. OpenAI says ads won't appear to users under 18 or alongside sensitive topics like health, politics, or mental health.
The move represents a practical necessity for OpenAI, which needs to cover the substantial costs of developing and running its AI systems. However, consumer resistance to AI advertising remains strong. The company faced backlash late last year when it tested app suggestions that resembled unwanted ads.
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