OpenAI Group PBC today started showing ads to some ChatGPT users in the U.S.

The move comes a month after the company announced plans to display paid content. At the time, OpenAI stated that it would test a limited number of ad formats and collect feedback to lay the groundwork for a broader rollout. According to Adweek, the company has asked the brands that are participating in the pilot to spend at least $200,000.

OpenAI will show ads to logged-in U.S. adults who are using ChatGPT’s free and Go tiers. The latter version, which became generally available last month, is the company’s entry-level subscription. It’s priced at $8 per month and enables consumers to send 10 times more messages than the free edition. Customers with pricier tiers won’t receive promotions. 

Ads appear below prompt responses and comprise a small snippet of text with an accompanying product image. For example, requesting a recipe from ChatGPT might bring up a promotion from an online store that offers relevant ingredients. OpenAI determines which offer to display based not only on the contents of a prompt but also the user’s chat history and past ad interactions.

According to the company, consumers can delete the data it uses to deliver ads with one click. It’s also possible to dismiss ads and submit feedback. Additionally, the artificial intelligence provider says that its advertising efforts won’t influence the nonpromotional answers generated by ChatGPT.

OpenAI stated that “we will evolve our advertising program to support additional formats, objectives and buying models.” Those models might involve the Instant Checkout feature that the company rolled out last September.

Instant Checkout enables ChatGPT users to order items from third-party e-commerce websites without leaving the interface. In the future, OpenAI may combine the feature with ChatGPT ads. It could display promotions that enable users to instantly purchase an advertised item using Instant Checkout instead of navigating to a retailer’s website.

To win over large brands, OpenAI may have to build the kind of marketing tools that are offered by established online advertising providers. Google LLC, for example, offers tools that enable marketers to design ads and measure their performance. It also enables brands to compete for ad space via an auction-like platform.

OpenAI’s ad business may take several years to take off. However, it could still deliver significant near-term benefits by driving up interest in the company’s forthcoming public offering. If the business demonstrates strong early growth, it may make it easier for OpenAI to achieve the $1 trillion market capitalization that it’s reportedly seeking. 

Image: OpenAI