By ByteBot
On November 29, software engineer Tibor Blaho discovered code references to advertising features buried in ChatGPT’s Android app beta version 1.2025.329. The leaked code includes strings for “search ad,” “search ads carousel,” and “bazaar content”—the first concrete evidence that OpenAI is preparing to introduce ChatGPT ads to its 800 million weekly users. For developers who rely on ChatGPT daily, this marks the end of the ad-free AI era.
OpenAI CEO Sam Altman previously called ads “uniquely unsettling” and a “last resort.” That last resort has arrived.
Why ChatGPT Ads Are Coming: $8B Burn Rate Forces OpenAI’s Hand
The financial math behind this pivot is brutal. OpenAI is burning $8 billion in cash this year alone, with projected operating losses ballooning to $74 billion in 2028—three-quarters of that year’s expected revenue. The company won’t reach profitability until 2029-2030, and that timeline assumes everything goes perfectly.
Meanwhile, only 4% of ChatGPT’s 800 million weekly users convert to paid subscriptions. That means 768 million users are burning through billions in compute costs while generating zero revenue. Internal documents show OpenAI forecasts $1 billion from “free user monetization” (ads) in 2026, growing to $25 billion by 2029. For context, first-half 2025 results showed $4.3 billion in revenue against $2.5 billion in cash burn—a trajectory that demands new revenue sources.
This isn’t about greed. When you burn $8 billion annually and only 4% of users pay, ads aren’t a choice—they’re survival. The subscription model alone can’t fund OpenAI’s infrastructure costs, let alone its ambitions for AGI.
Related: FinOps Market Hits $22.4B by 2030 as Cloud Waste Soars
From “Uniquely Unsettling” to “Kinda Cool”: Altman’s Pivot on OpenAI Advertising
Sam Altman’s stance on advertising has evolved remarkably fast. At Harvard Business School in 2024, he stated: “I think that ‘ads-plus-AI’ is sort of uniquely unsettling to me.” He called advertising a “last resort” and said he hated it “as an aesthetic choice.”
By 2025, his tone shifted. In a Stratechery interview, Altman admitted Instagram changed his mind: “I’m not totally against it. I think ads on Instagram are kinda cool.” He now believes “maybe ads don’t always suck.” In October 2025, OpenAI hired Fidji Simo—former Meta executive who helped build Facebook’s ad empire—as Chief of Applications. She’s building the team to bring ads to ChatGPT.
The hiring of Simo signals OpenAI is all-in on advertising, not just exploring it. It’s also the ultimate irony: AI that helped disrupt Google’s search ad business is now copying it. The “last resort” Altman warned about? We’re here.
Beta Code Exposes Search Ads and Product Carousels
Tibor Blaho’s discovery provides concrete technical details. The beta 1.2025.329 code contains four key strings: “ads feature,” “bazaar content,” “search ad,” and “search ads carousel.” These reveal OpenAI’s implementation strategy.
Ads will start with ChatGPT’s search experience—not the main chat interface. This is a cautious approach, testing the least intrusive placement first. The “search ads carousel” indicates scrollable collections of sponsored items, similar to Google Shopping or Instagram ads. “Bazaar content” suggests shopping-focused product cards with recommendations.
This means developers researching solutions or comparing tools will see sponsored recommendations. Ask ChatGPT “What’s the best CI/CD platform?” and expect sponsored results from CircleCI, GitLab, or GitHub Actions alongside the actual answer. The ads will blend into conversational responses—”native advertising” designed for AI chat interfaces.
Blaho’s post on X received over 120,000 views and became the top story on Hacker News (474 points, 469 comments) on November 29. The discovery isn’t speculation—it’s evidence of active development.
Developers Revolt, But All AI Including ChatGPT Is Going Ad-Supported
The backlash was immediate. On Hacker News, developers expressed anger about workflow disruptions and privacy concerns. One Twitter user wrote: “Using our chat history for advertisements is absurd. This is essentially the quickest way to discourage people from using ChatGPT.” Another asked: “Why don’t they just focus on building superintelligence? It’s way bigger than ads.”
The community’s biggest concerns center on three issues. First, will ChatGPT Plus ($20/month) remain ad-free? Paid users worry ads might extend to paid tiers eventually, following Twitter Blue’s pattern. Second, will chat history be used for targeting? The privacy implications are massive if personal conversations train ad algorithms. Third, should developers migrate to Claude or other alternatives?
However, ChatGPT isn’t alone in this shift. Microsoft Copilot already features conversational ads with 73% higher click-through rates than traditional search ads and 16% stronger conversions. Google Gemini integrates ads via Google Search. AI-powered ads deliver 25% higher relevance compared to traditional search, according to Google’s data. Only Anthropic’s Claude remains ad-free—for now.
This marks the end of the ad-free AI era (2022-2026). That period was an anomaly, funded by VC billions during the growth phase. Now the bills are due. “AI-native advertising” is becoming a new category, reshaping how ads work in conversational interfaces. Free AI-as-a-service is dead. The choice is binary: pay or see ads. There’s no third option.
Key Takeaways
- OpenAI’s $8 billion annual burn rate and 4% subscription conversion made ads inevitable, not a choice—profitability won’t arrive until 2029-2030 at the earliest
- Sam Altman’s reversal from “uniquely unsettling” to “kinda cool” reflects financial reality, accelerated by hiring Meta’s Fidji Simo to build the ad platform
- Leaked beta code reveals ads starting with search results (not main chat), featuring product carousels and shopping cards blended into conversational responses
- Developer backlash centers on workflow disruptions, privacy concerns about chat history targeting, and whether paid ChatGPT Plus will remain ad-free
- All major AI chatbots are adopting ads (Microsoft Copilot, Google Gemini)—the 2022-2026 ad-free AI era is over, with only Claude holding out
OpenAI targets $1 billion in ad revenue for 2026, growing to $25 billion by 2029. Developers face a decision: tolerate ads in free ChatGPT, pay $20/month for Plus (assuming it stays ad-free), or migrate to alternatives. The “last resort” is no longer hypothetical.
