[Digital Today intern reporter Seungah Yoo] OpenAI unveiled a plan to grow ChatGPT into a major advertising platform that combines strengths of Google and Meta.

On Sept. 8 (local time), Business Insider reported that OpenAI Chief Financial Officer Sarah Friar (사라 프라이어) described ChatGPT’s advertising business at Goldman Sachs’ Communacopia+Technology Conference in San Francisco as “like Google and Meta having a baby.” The remark shows OpenAI’s direction to develop ChatGPT into a platform that, like Google and Meta, uses advertising as a core revenue source.

Friar said OpenAI’s ad business reached a level that could generate $1 billion a year on an annualised basis seven months after introducing ads on ChatGPT. OpenAI currently displays basic ads at the bottom of ChatGPT responses for users on its free and paid subscription plans.

What OpenAI is focusing on is combining advantages of search ads and social media ads. Friar explained that based on information ChatGPT gains through conversations with users, it can use both Google search’s ability to identify intent and the contextual information Meta holds on social media users.

He said ChatGPT users enter more information directly than they do in search, allowing it to identify high purchase intent. He added that because the service retains memories about users, it can deliver ads tailored not to a general user group but to “that person.” He said combining the two elements would enable the creation of a very powerful advertising platform.

Ad formats are also expected to become more sophisticated. Friar said OpenAI is building the basic structure of its ad platform and expanding its use, while also developing advertising formats more specialised for AI. She said she has seen early versions of ad formats suitable for AI from her team, but OpenAI is not yet ready to launch an AI-native ad format in earnest.

OpenAI’s push to expand advertising is also a major shift from its previous stance. OpenAI Chief Executive Sam Altman (샘 알트먼) said in 2024 that he felt “particularly uncomfortable” about combining advertising and AI.

Behind OpenAI’s focus on advertising is also a massive cost burden. OpenAI must connect the ChatGPT application, which has secured about 1 billion users, large funding and leading AI research capabilities to a sustainable business. At the same time, it must bear heavy spending needed for AI inference costs, data centre construction and research and development as it expands its consumer and enterprise businesses.

The expansion of advertising is also drawing attention as it aligns with OpenAI’s preparations for an initial public offering. OpenAI and Anthropic each submitted S-1 filings confidentially for an IPO in June. Anthropic, in contrast to OpenAI, has shown a critical stance toward placing ads in chatbot responses. The IPOs of the two companies are expected to serve as a test bed for how Wall Street assesses the profitability and financial condition of AI companies.

Anthropic is expected to file a public S-1 within the next few weeks, but OpenAI has not disclosed a specific listing schedule. Friar has previously said OpenAI would go public by the end of 2027.

OpenAI was valued at $852 billion in a fundraising round in March and raised $122 billion.