OpenAI promotes ChatGPT ads at Cannes Lions as it nears an IPO

In short: OpenAI is using the Cannes Lions advertising conference to sell marketers on ads inside ChatGPT as it prepares for a possible stock market listing.

What happened

OpenAI is presenting at Cannes Lions, a major global advertising event in France, for the first time. The company is pitching its growing advertising business for ChatGPT, alongside a separate product called Codex, which can write software from simple instructions.

OpenAI executive Dave Dugan, who leads its global advertising team, said the company is committed to advertising. He said ad revenue could help pay for wider access to information, since many people use ChatGPT for free.

Ads currently show up for people on ChatGPT’s free plan and its “Go” plan, which costs $8 a month. OpenAI says ads are labeled as sponsored and appear below normal answers, and that the chatbot’s responses are not changed by advertisers.

The push comes as OpenAI looks for more ways to make money. The Financial Times reported that OpenAI spent $34bn last year, and its costs have been rising faster than its revenue. The company has been rolling out ads gradually since February, and it has ads running in seven markets so far.

Why it matters

For everyday users, this is a sign that chatbots may start to look more like search engines, where ads help fund free services. It could also shape what you see when you ask for shopping, travel, or financial recommendations, even if the ad is placed “under” the answer (like a sponsored poster on a community noticeboard). For advertisers, OpenAI is arguing that ChatGPT can show products at the moment someone is already asking questions that suggest they want to buy.

Source: Financial Times