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ChatGPT rolls out ads

Read the full articleChatGPT rolls out ads on TechCrunch

What Happened

OpenAI faced a backlash late last year when it tested app suggestions that looked like unwanted ads. Still, the AI company needs to generate revenue from its popular chatbot to cover the costs of developing its technology and growing the business.

Our Take

They need revenue because the math doesn't work. Free chat at scale doesn't pay for the compute. The "backlash" was theater—they always planned this. Ads in a $200/mo API is more honest than pretending free access funds itself. But expect worse: paywalls in the free tier, sponsored responses, degraded performance for non-paying users.

This is just the beginning. They're still figuring out how to monetize without killing the product.

What To Do

If you're building on ChatGPT, assume APIs get worse and more expensive—build fallbacks now.

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