"A report in The Information today suggests that OpenAI is already exploring possible ad formats and partnerships, with one of the favorite ideas being to integrate them within ChatGPT's responses. Though the initiative is still in the initial planning stage, it's believed that the company sees ads as key to building a sustainable business model over the long term."
"Its primary revenue stream comes from subscriptions, with the company charging "power users" $20 per month, but the vast majority of users don't pay anything at all. In order to fund its extremely ambitious data center-building plans and satisfy investors who have poured multiple billions of dollars into the company, OpenAI needs to find a way to make money from these free users"
"Training large language models and performing real-time inference for millions of users globally requires vast computing resources, and it's thought that the company is burning through hundreds of millions of dollars per month. If OpenAI can't generate enough revenue to cover these costs, it's ultimately destined to become the biggest failed venture in the history of the technology industry."
OpenAI is exploring embedding advertisements into ChatGPT responses and evaluating ad formats and partnerships as a potential long-term revenue source. Subscription fees from "power users" at $20 per month are the main income stream, while most users remain free. Training large language models and serving millions of users requires vast computing and data-center investments, costing the company hundreds of millions of dollars monthly. Generating revenue from free users is necessary to fund expansion and satisfy investors. The advertising initiative is in early planning, with teams weighing integration approaches to preserve user experience.
Read at SiliconANGLE
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