OpenAI to expand ads targeting free users via updated privacy policy

MUMBAI: Your chats may stay hush-hush, but your clicks are about to get chatty. OpenAI is stepping up its advertising play, signalling a sharper focus on monetising free users through targeted ads across the web. The shift follows updates to its privacy policy in the United States, with the company informing users that cookies will now be used to promote its services on third-party platforms.

The move draws a clear line between conversation and conversion. While OpenAI has reiterated that ChatGPT interactions remain private and are not shared with advertisers, user behaviour captured through cookies and device identifiers will help shape how and where its ads appear outside the platform.

In practical terms, this means browsing activity linked to OpenAI’s services could be used to market products such as ChatGPT and Codex, as well as measure campaign effectiveness. For instance, the company may track whether a user signs up for a service after seeing an advertisement on platforms like Instagram.

The feature is already tilted towards scale. Marketing settings are reportedly enabled by default for free-tier users, while remaining opt-in or disabled for paid subscriptions such as Plus and Enterprise. Users can, however, switch off tracking through the Data Controls and Marketing Privacy settings within ChatGPT.

This push comes alongside OpenAI’s broader experimentation with advertising formats inside its ecosystem. Earlier this year, the company began placing ads at the bottom of chatbot responses for users in the US, an early signal of how generative AI platforms may blend utility with monetisation.

Importantly, OpenAI maintains that it does not share user conversations or sensitive content with marketing partners. Instead, it works with limited identifiers such as cookie IDs or email-linked signals to deliver and evaluate ads without exposing personal dialogue.

The updated policy also expands disclosure around how personal data is used for marketing, clarifying that certain identifiers may be shared with partners to promote OpenAI’s services beyond its own platforms.

As rivals like Google explore similar ad integrations within AI experiences, OpenAI’s latest move underscores a broader industry shift: the race to make AI not just smarter, but commercially sustainable, one targeted click at a time.