OpenAI's VP of monetization partnerships, Samantha Jacobson, asserted that the company's ad business is designed to benefit all of humanity. The company is targeting $2.5 billion in ad revenue this year and $100 billion by 2030.
TL;DR
- OpenAI is targeting $2.5 billion in ad revenue this year and $100 billion by 2030.
- The company believes that ads in ChatGPT benefit humanity by making the service free for those who can't afford to pay.
- OpenAI is betting on intent over identity, meaning that ads will be based on what the user is trying to do at that moment rather than their personal data.
What happened
During a panel at Advertising Week New York, Samantha Jacobson, OpenAI's VP of monetization partnerships, discussed the company's ad business and its ambitions for ChatGPT.
Jacobson stated that OpenAI's ad business is designed to benefit all of humanity by making ChatGPT free for those who can't afford to pay. She drew comparisons to Paramount's subscription tiers, which are priced by how many ads a viewer will sit through.
OpenAI started selling ads in ChatGPT in February and opened a self-serve Ads manager in the U.S. in May. By the end of August, ChatGPT ads had hit a $1 billion annualized run rate, with tens of thousands of advertisers and availability in more than 40 countries.
Why it matters
OpenAI's ad business is a delicate bargain, as users are exchanging their attention for a free service. The company is betting that ads based on intent will be less intrusive and more helpful than traditional ads based on personal data.
OpenAI's ad principles promise to keep conversations private from advertisers and never sell user data to them. This approach may appeal to users who are uneasy about the tech listening in the first place.
The company's ambitious revenue targets and rapid growth in its ad business make it a key player in the AI industry. However, the success of its ad business will depend on its ability to maintain user trust and deliver on its promises.
Key facts
- OpenAI is targeting $2.5 billion in ad revenue this year and $100 billion by 2030.
- The company started selling ads in ChatGPT in February and opened a self-serve Ads manager in the U.S. in May.
- By the end of August, ChatGPT ads had hit a $1 billion annualized run rate, with tens of thousands of advertisers and availability in more than 40 countries.
- OpenAI's ad principles promise to keep conversations private from advertisers and never sell user data to them.
- The company believes that ads based on intent will be less intrusive and more helpful than traditional ads based on personal data.
- OpenAI's VP of monetization partnerships, Samantha Jacobson, stated that consumer trust is the single most important thing and that the company would protect it even if it's at the expense of revenue or other partnership opportunities.
Context
OpenAI is not the first company to make trust pledges. Facebook settled with the Federal Trade Commission in 2011 over its privacy promises, and data on up to 87 million people was later harvested through a quiz app and passed to Cambridge Analytica. Google went public in 2004 under the motto 'Don't be evil' and federal judges have since ruled it illegally monopolized both search and ad tech.
The ad business has given fresh material to Robert Burns' line about the best-laid plans of mice and men. OpenAI may well hold the line, but the people asked to take its pledge on faith have watched earlier ones age and they'll judge this one by what the ads business does when its $2.5 billion revenue target gets harder to hit.
