OpenAI's Sam Altman declares 'code red' to revamp ChatGPT, advertising plans delayed: Report

OpenAI CEO Sam Altman has reportedly declared a "code red" internally to focus on improving ChatGPT, planning to delay other initiatives like advertising, according to a Monday report from The Information citing an internal memo. While OpenAI has not publicly confirmed plans to sell advertisements, the company is reportedly testing various ad types, including those related to online shopping, a person familiar with its plans told The Information.

It was earlier reported that OpenAI is preparing to introduce advertising within ChatGPT, marking a significant shift in the chatbot’s business model. The current proposal suggests users could soon face a choice between maintaining a tailored AI experience or opting out of memory and losing personalization to avoid targeted ads. The move would represent OpenAI’s first major attempt to monetize ChatGPT through advertising, rather than relying solely on subscriptions such as ChatGPT Plus and enterprise partnerships.

Focus groups involved in the research reportedly revealed that some users already believe ChatGPT contains ads, a perception that has encouraged certain OpenAI staff to push for their introduction. Those advocating the idea are said to include several former Meta employees, who have joined OpenAI in large numbers. According to the report, around 630 of OpenAI’s 3,000 employees previously worked at Meta, and the company has even created a dedicated Slack channel for these hires. Among them is Fidji Simo, now CEO of Applications at OpenAI, who played a major role in bringing ads to Facebook’s app during her decade-long tenure at Meta. Simo is reportedly spearheading efforts to form a team tasked with integrating advertising into ChatGPT.

While this marks a new direction for OpenAI, the company’s leadership has historically expressed caution around advertising. In an interview with the Financial Times last December, CFO Sarah Friar stated that OpenAI had no active plans to pursue advertising, though the company remained open to exploring "new revenue streams." CEO Sam Altman, too, has been ambivalent about ads. On the Lex Fridman Podcast, Altman said he "kind of hates ads just as an aesthetic choice," adding that while advertising played an important early role in the internet’s growth, he preferred a paid model where "users know that the answers they’re getting are not influenced by advertisers." However, Altman has also acknowledged that ads can be effective when done well, praising Instagram’s ad experience in another interview earlier this year. "I’m not totally against it," he said. "I think ads on Instagram are kind of cool—I’ve bought a bunch of stuff from them. But it would take a lot of care to get right."