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Overview: OpenAI, ChatGPT, and the new targeted ads

OpenAI announced in mid January 2026 that it will introduce targeted advertising inside ChatGPT. The company says the change will affect some users, and that those impacted will have controls that let them manage or limit what they see.

This matters for millions of ChatGPT users because the product is used for everyday tasks such as drafting email, researching topics, getting homework help, and running small business workflows. Introducing ads inside chat can change how people interact with the assistant, how private their conversations feel, and what options they have to avoid personalization.

What OpenAI announced, in plain language

OpenAI said it will begin showing targeted ads inside ChatGPT. The announcement described the feature at a high level, and emphasized that users who see ads will have some controls over personalization. OpenAI framed this as a way to support free access while also expanding business revenue.

Who will be affected

OpenAI did not say every ChatGPT user will immediately see ads. It described a rollout that will reach some users first, with controls provided for those impacted. The company suggested that the experience will differ by account and by setting, rather than applying uniformly to every person right away.

How the ads will work

OpenAI shared basic details about the mechanics, without a full technical breakdown. The announced approach covers ad types, where ads may appear in chat, and what signals can be used to personalize content.

Types of ads and where they will appear

• Sponsored suggestions. Ads may appear as recommended links, suggested follow up prompts, or promotional content presented alongside normal assistant replies.
• Banner or card style placements. Short ad cards could appear in the chat stream, formatted to look distinct from assistant messages.
• Contextual prompts. Ads may reference the topic of a current conversation, for example suggesting a product category when a user asks about travel or laptops.

Personalization signals

OpenAI said personalization will use signals such as account information, recent conversation topics, and broader usage patterns. Device signals and location information are common ad signals in the industry, and OpenAI noted it will use a mix of signals to try to make ads relevant to users.

Controls OpenAI says it will provide

• Toggle personalization. The company said users who see ads will be able to turn personalization on or off for their account.
• Topic controls. Users will be able to block specific ad topics or categories from appearing in their chats.
• Opting for paid tiers. In many cases, paid subscription options can remove ads entirely, though the exact terms will depend on OpenAI’s subscription plans.

Privacy implications and data use

Introducing targeted ads raises several privacy questions. The core concerns are what data is used to select ads, how that data is stored, and whether ad signals are used to train OpenAI models.

What data may be used for targeting

• Account profile and preferences, such as language and basic profile fields.
• Recent chat topics and keywords, which could indicate user intent or interests.
• Device and location signals, which help localize or time ads.
• Usage patterns, including frequency of use and types of features accessed.

OpenAI says it will be transparent about which signals are used, and that users will have controls to limit personalization. Users should review updated privacy settings and the privacy policy when the feature launches.

Conversation confidentiality and model training

Users commonly assume chat content is private to the assistant. Adding ads introduces complexity because ad personalization depends on some representation of user behavior. OpenAI has indicated it will treat ad signals under its privacy rules and provide controls. The company also addressed whether conversational data will be used to train models, and said it will distinguish between data used for ad targeting and data used for model training. Users should expect clear options and documented policies about whether their chat content contributes to model updates.

Why OpenAI is pursuing ad monetization

There are simple business reasons behind the move. Ad revenue can help OpenAI diversify income, support a free tier for users who cannot or will not pay, and meet investor expectations for sustained revenue growth. Ads are a common way for internet services to fund free access, and OpenAI appears to be following that well established path.

User experience concerns

Placing ads inside an assistant that answers questions raises several user experience risks.

• Relevance. Poorly targeted or irrelevant ads can interrupt the flow of a conversation and reduce trust in the assistant.
• Intrusiveness. Frequent ad interruptions or large ad blocks can make the product feel cluttered.
• Manipulation. Ads that mimic assistant suggestions could shape user decisions in subtle ways. Clear labeling is essential to prevent confusion.
• Misinformation risks. Advertisers may make exaggerated or misleading claims, and the assistant must not amplify false or harmful content.

How OpenAI labels and integrates ads will determine whether users feel respected and protected.

Regulatory and legal considerations

Targeted advertising inside chat tools may trigger scrutiny under privacy laws such as the EU General Data Protection Regulation and California’s consumer privacy law. Key regulatory questions include consent, transparency, the legal basis for processing personal data, and users’ rights to access or delete data.

Regulators will look for clear consent flows, simple settings to opt out of personalization, and strong documentation showing how data is used. Lawmakers who are already examining AI and digital advertising may pay close attention to whether targeted ads inside conversational AI comply with existing rules.

Comparison with competitors and user choices

Users have alternatives. Some providers offer paid tiers that remove ads. Others, including privacy focused models, promise minimal data collection and ad free experiences. One such service, mentioned in industry discussions, markets itself as a privacy first alternative to mainstream models. Choosing between options comes down to cost, features, and how comfortable a user is with data collection.

Practical advice for users

If you use ChatGPT or are considering it, here are steps to prepare for targeted ads.

• Check account settings after the rollout. Look for personalization toggles and topic controls.
• Consider a paid subscription if you want an ad free experience and do not want personalized ads.
• Limit sensitive content in chats. Avoid sharing personal health, financial, or legal details if you are concerned about personalization.
• Review the updated privacy policy when it is published, and use rights such as data access or deletion where available.
• Try privacy focused alternatives if you want minimal data collection, and compare feature sets before switching.

Timeline and expected public reaction

OpenAI has signaled a phased rollout, starting with some users and expanding over time. Expect public scrutiny from privacy advocates, media coverage about how ads are integrated, and user feedback about control quality and ad relevance.

How smoothly this goes will depend on how clearly OpenAI communicates options, how effective the controls are, and whether regulators raise concerns.

Key takeaways

• OpenAI will begin showing targeted ads in ChatGPT, and says affected users will have controls to manage personalization.
• Ads may appear as sponsored suggestions, banners, or contextual prompts within chat.
• Personalization uses account, conversation, and usage signals; users should review privacy settings and policies carefully.
• Options to avoid ads include toggling personalization controls, using paid subscriptions, or choosing privacy focused alternatives.
• Regulators will likely examine whether the ad experience respects consent and privacy law requirements.

FAQ

Will my chat content be used to train the model?

OpenAI says it will provide details on how ad signals are handled and how those signals relate to model training. Users should consult OpenAI’s privacy statements for definitive information when the company publishes them.

Can I opt out of targeted ads?

OpenAI says users who see ads will have some controls to limit or turn off personalization; opting out completely may involve switching to a paid subscription depending on OpenAI’s final settings.

Are targeted ads coming to every user?

The rollout is planned in stages, so not every user will see ads immediately. OpenAI said it will start with a subset of users and expand over time.

Conclusion

OpenAI’s decision to introduce targeted ads inside ChatGPT is a notable shift. It aims to fund free access and diversify revenue while promising controls for users. For ordinary users, the practical steps are simple. Review privacy settings, consider paid plans if you want to avoid ads, and limit sensitive content in chat. Regulators and privacy advocates will watch closely, and the quality of controls and transparency will shape whether users accept ads inside conversational AI.