OpenAI begins testing ads in ChatGPT
OpenAI has started testing advertisements within its ChatGPT service. Early reports indicate that cost-per-mille (CPM) rates are comparable to those of premium video and television advertising. The move positions the AI platform as a new channel for creative and contextually relevant advertising, creating both a competitive threat and a potential opportunity for the adtech industry.
- The ad model is positioned as a premium offering, with a reported cost-per-mille (CPM) of approximately $60, which is three times higher than typical rates on Meta's platforms. Advertisers are also facing a high barrier to entry with a minimum commitment of $200,000. Early partners for these tests include major agency holding companies like WPP, Omnicom, and Dentsu. - Ads will only be displayed to users on the free and newly launched $8/month "ChatGPT Go" tiers. Subscribers to the Plus, Pro, Business, and Enterprise plans will have an ad-free experience. OpenAI has stated that conversations will remain private and will not be shared with advertisers. - The initial ad format will be contextually targeted sponsored links appearing at the bottom of a response, based on the current conversation's topic, location, and language. Users will have the option to disable personalization, which would otherwise use previous chats and interactions to tailor ads. Sensitive topics like health and politics are excluded from ad targeting. - This move into advertising is a significant part of OpenAI's strategy to diversify revenue streams as it faces projected losses of $14 billion in 2026, despite a $20 billion annualized revenue run rate. Industry experts estimate the new ad business could generate between $500 and $800 million in its first year. - The shift toward conversational AI is creating a new paradigm of "agentic workflows," where autonomous AI agents execute tasks and make decisions across different software systems. This trend is expected to significantly impact enterprise SaaS, with Gartner predicting that one-third of enterprise applications will include AI agents by 2028. Companies like Salesforce, with its "Agentforce" platform, are already building capabilities for these coordinated agent stacks. - In the UK tech ecosystem, AI remains a dominant investment theme, with over 60% of seed-stage companies funded in 2025 leveraging AI. Overall UK tech funding reached $15.3 billion in 2025, with enterprise applications being the top sector. Notable recent CTO appointments in the UK include Lee Stretton at UrbanChain and Alexander Matthey at PPRO. - For the 2026 season, Formula 1 is introducing major technical regulation changes to create lighter, more agile cars and overhaul the power units. The new rules will increase electrical power to create a roughly 50/50 split with the internal combustion engine and will feature active aerodynamics to reduce drag and improve overtaking. These changes have attracted new and returning manufacturers like Audi, Ford, and Honda.
