Microsoft-backed (MSFT) AI firm OpenAI (PC:OPAIQ) appears to be moving closer to showing ads inside its widely used ChatGPT chatbot, according to The Information. The report says that internal discussions have focused on adjusting certain AI models to make sponsored content appear in responses. At the same time, OpenAI has reportedly reviewed mockups showing different ways that ads might be displayed inside the app.
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In addition to standard ad formats, OpenAI is considering creating a new type of digital advertisement. That would place OpenAI into a highly competitive market currently dominated by Google (GOOGL), Meta Platforms (META), and Amazon (AMZN), which together account for more than half of global digital ad spending.
This move is part of OpenAI’s monetization strategy, with CFO Sarah Friar previously confirming that ads were being explored. Importantly, advertising could significantly boost revenue as OpenAI prepares for another major funding round that could see it raise as much as $100 billion. It’s also worth noting that CEO Sam Altman said the company already generates well over $13 billion in revenue and could reach $100 billion by 2027.
Is MSFT Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 32 Buys and two Holds assigned in the last three months. Furthermore, the average MSFT price target of $631.36 per share implies 29.5% upside potential.
