Last week, OpenAI announced its plans to integrate ads into ChatGPT. "Free" and "Go" users are expected to start seeing ads pop up while interacting with the chatbot in the next few weeks.
The move was received with mixed emotions, as even CEO Sam Altman once indicated that integrating ads into ChatGPT would be treated as a last resort. "Ads plus AI is sort of uniquely unsettling to me," Altman added. "I kind of think of ads as a last resort for us for a business model."
The executive indicated that Google doesn't have any plans to integrate ads into the Gemini app. However, it now appears that Google may have to reconsider, following OpenAI's decision to introduce ads to ChatGPT.
Evercore ISI's financial and tech analyst Mark Mahaney predicts that OpenAI could generate up to $25 billion in annual ad revenue by 2030 if it executes the strategy properly (via Business Insider). "A path to generating several billion dollars in ad revenue in 2026, going to $25B+ by 2030, seems reasonable," they added.
Mahaney predicts that ChatGPT's user base will have grown tremendously. While dismissing talks of an AI bubble, OpenAI CEO Sam Altman indicated that he expects the company's annual revenue to grow to $100 billion by 2027.
OpenAI appears to be well on its way to achieving this milestone. According to the ChatGPT maker's CFO, Sarah Friar, annual revenue surged to $20 billion in 2025, a dramatic increase from $2 billion in 2023.
In comparison, Google Search and YouTube potentially generated up to $300 billion in ad revenue in 2025. Last October, Sam Altman indicated that ChatGPT has 800 million weekly users. This could potentially be a goldmine for advertisers, as part of the interactions and conversations users have with the chatbot usually include what they want and need.
However, as part of OpenAI's ad principles, the company indicated that, despite integrating ads into ChatGPT, it will uphold user privacy and won't share their data with advertisers. "We keep your conversations with ChatGPT private from advertisers, and we never sell your data to advertisers," OpenAI added.
OpenAI's move directly challenges this core revenue stream by offering an alternative, highly engaging platform for users to discover products and services. If ChatGPT can successfully integrate ads that are helpful rather than intrusive, it could siphon off valuable commercial queries that traditionally go to Google.
Evercore ISI, Mark Mahaney
Perhaps more interestingly, the executive warned that if OpenAI could come up with a "conversational" ad format, which would allow users to discuss potential purchases, it would revolutionize the whole ad game. Consequently, attracting the interest of advertisers with "high-intent engagement."
It'll be interesting to see if OpenAI can overcome its financial woes, with predictions suggesting that it is slated to make a $14 billion loss in 2026, potentially setting it up for bankruptcy by mid-2027.
Will OpenAI capitalize on ChatGPT ads, or will bankruptcy thwart its ambitions? Share your thoughts in the comments and cast your vote!
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