OpenAI Turns to Ads as ChatGPT Plus Users Drop 80%, Targets 122 Million Subscribers

OpenAI is planning a major shift in how it makes money from ChatGPT, according to a report by The Information. The company expects a lower-priced plan, called ChatGPT Go, to drive a sharp rise in paying users this year, even as many current subscribers move away from its $20 plan.

The news arrives amid reports that the company hasn’t met its own targets for new users and revenue. With its valuation nearing $1 trillion and no profit yet, the shift in strategy may reflect growing concerns about scaling revenue more efficiently.

ChatGPT Go costs about $8 per month in the U.S. and less in some global markets. It includes more features than the free version but also shows ads. OpenAI expects this tier to reach 112 million users this year, up sharply from last year.

At the same time, the company forecasts that ChatGPT Plus subscribers will drop by about 80% to roughly 9 million. This suggests that much of the growth in the cheaper plan will come from users switching from higher-priced tiers.

In total, OpenAI expects its consumer subscriber base to more than double to 122 million this year. However, average revenue per user is set to fall from about $23 per month last year to under $12 next year.

Ads Seen as Key Revenue Driver

As subscription revenue per user declines, OpenAI is placing a growing focus on ads. The company projects that ads will become its largest source of income by 2030, reaching about $102 billion, or 36% of total revenue.

For now, the ads business is still in its early stages. OpenAI launched a pilot in February and was generating about $100 million in annualized ad revenue by late March. Still, it expects ad revenue to reach about $2.4 billion this year and grow quickly in the years ahead.

The strategy reflects rising pressure from competitors like Alphabet (GOOGL), which offers its Gemini AI for free and relies on its strong ad business. As four-star analyst Michael Nathanson noted, “It’s going to be a challenge to compete with Alphabet,” since Google can afford to give away AI tools.

OpenAI is also betting on global growth. About 90% of its users are outside the U.S., with strong demand in markets like India and Brazil. Lower pricing is likely to attract more users in these regions.

Overall, OpenAI still expects total revenue to more than double to $30 billion this year, with a long-term target of $284 billion by 2030. While the outlook points to strong growth, the shift toward ads and lower pricing could bring both new users and new risks, especially if user experience or ad demand falls short of expectations.

Using TipRanks’ Comparison Tool, we’ve compared notable companies that employ chatbots, such as OpenAI’s ChatGPT and Claude by Anthropic. The comparison tool helps investors gain a broader outlook on each stock and the industry as a whole.