OpenAI to start showing ads on ChatGPT’s free and Go tiers in India
OpenAI will begin showing ads on its ChatGPT Free and Go subscription tiers in India. This move follows changes to its terms of service earlier this month, indicating the company's intent to monetize its AI assistant through advertising. OpenAI has over 100 million weekly active ChatGPT users in India, with a significant portion on the free or lower-priced Go plans. The company plans to start with ads from 50 brands, partnering with agencies WPP and Omnicom, and will launch an ad manager next month for campaigns with a minimum daily budget of ₹725 ($7.60).
OpenAI's decision to introduce ads on its ChatGPT Free and Go tiers in India reflects a clear strategy to monetize its substantial user base in the country. With over 100 million weekly active users, many on free or low-cost plans, India represents a critical market for revenue growth ahead of a potential IPO. The company has actively cultivated this user base through initiatives like the sub-$5 ChatGPT Go plan and extensive advertising during major sports tournaments like the IPL. This move follows similar ad rollouts in the U.S. and Europe, indicating a global push for ad revenue. The introduction of an ad manager next month, allowing marketers to create campaigns with a daily minimum budget of ₹725, suggests OpenAI is building a scalable advertising platform. For Indian businesses, this opens a new channel to reach a large, engaged audience at what OpenAI describes as "relevant, high-context moments." The key watch point for India will be user acceptance and the effectiveness of these ads in a market where many users are accustomed to free services.
