In a recent interview, Demis Hassabis, CEO of Google DeepMind, addressed the burning question regarding the future of AI monetization: Will Google introduce advertisements into its Gemini chatbot?
The question arose shortly after OpenAI announced it would begin displaying ads for users on its "Free" and "Plus Go" (budget-friendly) tiers. Hassabis responded with a measured stance, stating that Google has "no current plans" to integrate ads into Gemini at this time. However, he admitted that such a move wouldn't be surprising in the long run, given that Google is fundamentally an advertising-driven technology giant.
Surprise at OpenAI’s Speed
Hassabis expressed genuine surprise at OpenAI’s swift move toward an ad-based model. "I didn't expect them to move this quickly," he noted, speculating that the decision was likely driven by the urgent need for OpenAI to diversify its revenue streams amid skyrocketing operational costs.
- OpenAI is rushing to incorporate ads (despite the risk to user experience) because the compute costs for hundreds of millions of free users are enormous. Analysts estimate that OpenAI could spend $7-8 billion annually just to maintain its infrastructure.
- Google has a different advantage because it already has a robust Search Ads system. Immediately adding ads to Gemini could lead to cannibalization with the main search page. Therefore, Google focuses on integrating Gemini into Search (AI Overviews) instead, where users are already familiar with ads.
- Future ad formats in ChatGPT or Gemini may not just be annoying banners, but could come in the form of product suggestions. For example, when you ask for a recipe, the AI might suggest a brand of sauce with a purchase link – a format that generates higher revenue than traditional ads.
- This move by OpenAI creates a clear gap between "paid" (ad-free) and "free" (ad-supported) users, which may cause some privacy-conscious users to switch to alternatives such as Perplexity or Anthropic's Claude, which emphasize clean interfaces.
OpenAI Officially Begins Testing Ads in ChatGPT: What Free Users Need to Know
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