OpenAI CFO defends ChatGPT ads as necessary for business model

OpenAI's Chief Financial Officer, Sarah Friar, has publicly defended the company's controversial move to incorporate advertising into its flagship ChatGPT platform. Speaking on a panel at the World Economic Forum in Davos, Friar argued that establishing a robust revenue stream is critical to achieving the company's long-term mission of developing artificial general intelligence (AGI) for the benefit of all humanity.

Aligning Mission with Financial Sustainability

Friar emphasized the need to make AI accessible to a wide audience, stating, "Our mission is artificial general intelligence (AGI) for the benefit of humanity, not for the benefit of humanity who can pay." She contended that a sustainable financial foundation is required to support the immense costs of compute, talent, and infrastructure necessary for AGI research and development. This model, she suggested, is preferable to limiting advanced AI tools solely to a subscription-based premium tier.

Timing and Scale of the Ad Rollout

Addressing questions about the timing of the ad introduction, Friar challenged the notion of it being "early." She explained that advertising models require massive scale to be effective. "When you have 800 million weekly active users, you’re really far beyond many of the companies who started in that model," she noted, implying that ChatGPT's immense user base now provides the necessary scale for a successful ad-based revenue stream. OpenAI began testing targeted ads with select free-tier users in the U.S. last week.

Industry Context and Financial Performance

The move marks a significant pivot for the AI industry, which is grappling with soaring operational costs. OpenAI, facing pressure to justify its world-leading private valuation, is seeking diversified income beyond its subscription service, ChatGPT Plus. The company recently reported strong financials, with annualized revenue reaching $20 billion in 2025. The ad initiative represents a strategic attempt to monetize its vast free-user base while continuing to fund its capital-intensive pursuit of AGI.