Earlier quoted context omitted.
In case anyone is out-of-the-loop https://youtu.be/FVRHTWWEIz4?si=btZnQp0IEnmgrtWV&t=2388 "But I kind of think of ads as like a last resort for us for a business model. I would do it if it meant that was the only way to get everybody in the world access to great services. But if we can find something that doesn't do that, I'd prefer that."
What I think is really incredible about this is that they are selling a ton of subscriptions, both personal and business subscriptions. So the fact that they are doing advertising on top of this suggests to me that they are in a deep deep hole, much deeper than he probably would have imagined when making this statement. If your revenue is 25 billion and you still need ads, your costs must be running you down at a pac…
OpenAI has an unbelievable number of free users. People paying $20 a month or more are in the minority.
It’s not cheap to serve LLMs to hundreds of millions of users for free. They either cut the free tier or add ads to cover the costs.
Extrapolations about OpenAI being in dire financial straights are generally coming from people who don’t understand the extreme scale of their free plan or who didn’t read far enough to understand that the ads aren’t going into the $20 plan everyone knows.