OpenAI (PC:OPAIQ) has reportedly declared a “code red” as it moves to address growing threats to its flagship product, ChatGPT. According to The Information, CEO Sam Altman told employees the company will prioritize improving ChatGPT’s performance and security while delaying other initiatives, including advertising. The move highlights OpenAI’s focus on safeguarding its AI platform amid rising competition and potential risks in the rapidly evolving AI landscape.
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OpenAI’s Shifting Priorities
With this move, OpenAI is reprioritizing its efforts to focus on improving ChatGPT, putting early advertising tests on hold. While the company has been quietly experimenting with ad formats, including online shopping promotions, it has not publicly disclosed these plans.
It was previously reported that OpenAI is planning to introduce advertising in ChatGPT, marking a big change in its business model. Users might soon have to choose between keeping a personalized AI experience and turning off memory to avoid ads. This would be OpenAI’s first major effort to make money from advertising, alongside subscriptions like ChatGPT Plus and enterprise deals.
Nonetheless, the latest move signals a focus on refining the product and enhancing user experience over short-term monetization, even as competitors like Google (GOOGL) move quickly to integrate ads into AI-powered services.
Overall, analysts see OpenAI’s restraint as a long-term strategy aimed at retention and quality rather than immediate revenue.
Which Is the Best AI Stock to Buy, According to Analysts?
Investors looking to buy into OpenAI in 2025 may be disappointed, as the company is still private and not publicly traded.
However, those interested in the AI sector can explore other leading AI-related stocks. Using TipRanks’ stock comparison tool, investors can compare top AI companies and conduct further research to find the most promising options based on analyst ratings and insights.
