this post was submitted on 29 Mar 2026
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Enshittification

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What is enshittification?

The phenomenon of online platforms gradually degrading the quality of their services, often by promoting advertisements and sponsored content, in order to increase profits. (Cory Doctorow, 2022, extracted from Wikitionary) source

The lifecycle of Big Internet

We discuss how predatory big tech platforms live and die by luring people in and then decaying for profit.

Embrace, extend and extinguish

We also discuss how naturally open technologies like the Fediverse can be susceptible to corporate takeovers, rugpulls and subsequent enshittification.

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March 26 (Reuters) - OpenAI's ChatGPT ads pilot in the United States has crossed the $100 million annualized revenue mark within six weeks of launch, a company ​spokesperson said on Thursday, pointing to robust early demand for the ‌AI startup's nascent advertising business.

Sam Altman-led OpenAI had said in January that it would start showing ads in ChatGPT to some U.S. users, ramping up efforts to generate revenue ​from the AI chatbot to fund the high costs of ​developing the technology. The ads were to be tested with users ⁠on the company's free tier and the lower-priced Go plan.

The ads ​are separate from the answers generated by ChatGPT and do not influence its ​outputs. User conversations are not shared with marketers, the company said at the time.

While roughly 85% of users are currently eligible to see ads, fewer than 20% are ​shown ads daily, with considerable room to grow ad monetization within the ​existing user pool, the spokesperson said.

"We're seeing no impact on consumer trust metrics, low ‌dismissal ⁠rates of ads, and ongoing improvements in the relevance of ads as we learn from feedback," OpenAI said.

The company plans to expand the test globally in additional countries in the coming weeks, including in Australia, New Zealand, ​and Canada.

OpenAI has ​now expanded to ⁠over 600 advertisers, with nearly 80% of small- and medium-sized businesses signaling interest in ChatGPT ads, the spokesperson said.

The ​ChatGPT maker is set to launch self-serve advertiser capabilities ​in April ⁠to broaden access and drive further growth.

David Dugan, a former Meta (META.O), opens new tab ads executive, was named to lead OpenAI's global advertising solutions team earlier this week.

Analysts ⁠said ​that ads could unlock a significant revenue stream ​from millions of ChatGPT users, but the move could irk some customers and hurt trust ​in the product.

Reporting by Juby Babu in Mexico City; Editing by Alan Barona

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[–] noscere@sh.itjust.works 15 points 2 months ago (2 children)

Ahahah. How misleading of a headline. Think about what the phrase 100 Million in Annualized ad revenue means. Annualized means, if you take what they made in the last 6 weeks and PROJECT it out over a year, they will make $100 million in a year. I'd be really surprised if the $8-ish million per month the ads bring in covers the cost of compute to service the customers the ads are being served to.

[–] Tar_alcaran@sh.itjust.works 7 points 2 months ago

Exactly, this could mean as little as "they made 1.9m in their best rolling 7-day period".

And it's revenue. I can easily make 4 million a week, assuming you hand me 4.01 million, and I'd probably be FAR more efficient than OpenAI is.

[–] cronenthal@discuss.tchncs.de 5 points 2 months ago

And of course Reuters is just distributing the press release with no context whatsoever.

[–] Tar_alcaran@sh.itjust.works 15 points 2 months ago (1 children)

In other news: Im self employed and just got a 16k bill paid yesterday, meaning my annualized income is nearly 6 million euros!

[–] ExtremeDullard@piefed.social 4 points 2 months ago

OpenAI is earning peanuts and trying to sugar-coat it, sure. But the crucial thing is how much they're willing to enshittify their service to achieve that minuscule income compared to their insane investments.

[–] br3d@lemmy.world 7 points 2 months ago* (last edited 2 months ago) (1 children)

The ads ​are separate from the answers generated by ChatGPT and do not influence its ​outputs.

For how long, I wonder

[–] ExtremeDullard@piefed.social 3 points 2 months ago

If you believe ChatGPT isn't already subtly trying to sell you something someone paid OpenAI to plug, I have a bridge to sell you.

[–] LodeMike@lemmy.today 3 points 2 months ago (1 children)

So they made ~12 mil in 6 weeks. Cool. Why do they want a Trillion dollars?

[–] Tar_alcaran@sh.itjust.works 3 points 2 months ago

No, they made 1.9m in their best 7-day period.

Hell, they could have made 273k on their best day for all we know.

[–] baggachipz@sh.itjust.works 2 points 2 months ago

Yea and how many Billions did they burn during that time?

[–] ExtremeDullard@piefed.social 2 points 2 months ago

OpenAI's enshittification is proceeding apace.