A week after OpenAI announced it will begin testing ads in ChatGPT soon, Google DeepMind CEO Demis Hassabis called the rival's move a premature revenue push. He was speaking at an interview in Davos on the sidelines of the World Economic Forum. Commenting on the announcement, Demis Hassabis said, "It's interesting they've gone for that so early,” adding “Maybe they feel they need to make more revenue.” The Google AI CEO also said the company doesn’t have “any plans” to put ads in Gemini. In contrast, OpenAI is about to start testing ads in ChatGPT, causing outrage from many of its users.
In discussing AI ads at Davos, Hassabis also seemed to take a subtle shot at his chief AI rival, saying he was "surprised" that OpenAI was turning to ads so quickly, reports Axios. In a tweet, OpenAI said that ChatGPT ads will only show up in ChatGPT free and Go tiers, and explained that ChatGPT's responses will not be influenced by ads and that users' conversations will remain private from advertisers.
Meanwhile, Demis Hassabis met India’s Minister for Electronics and Information Technology Ashwini Vaishnaw on the sidelines of the World Economic Forum (WEF) annual meeting in Davos, Switzerland. Hassabis shared details of the meeting in a post on social media platform X (formerly Twitter), saying he enjoyed the discussion on AI’s potential to benefit humanity and highlighted India’s importance in realising that goal. He also said he looked forward to continuing the conversation at the upcoming AI Impact Summit in New Delhi.
“Great to meet you Minister @AshwiniVaishnaw. Really enjoyed our discussion on AI’s incredible potential to benefit humanity & India’s important role in realising this,” Hassabis wrote, adding that he looks forward to further discussions at the summit.
"What matters most: Responses in ChatGPT will not be influenced by ads, ads are always separate and clearly labeled, your conversations are private from advertisers, plus, Pro, Business, and Enterprise tiers will not have ads," the post read.
The company said that its mission is "to ensure AGI benefits all of humanity," and that its pursuit of advertising is "always in support of that mission," as well as "making AI more accessible.
It probably isn't that simple, though. In 2024, OpenAI CEO Sam Altman said ads were a "last resort" for the company, and recent reports describe how Altman internally declared "code red," prioritizing efforts to make sure ChatGPT doesn't fall behind competitors, including Gemini.
ALSO READ: Jamie Dimon, CEO of US' largest bank JPMorgan, unhappy with global elites' meet in Swiss Alps’ Davos, says ‘you’re not doing a good job…’
This week too, noted investor George Noble stated that the company is "falling apart in real time" despite its eye-watering $500 billion valuation. In a scathing analysis titled ‘OPENAI IS FALLING APART IN REAL TIME’ on X, Noble highlighted what he calls unmistakable signs of trouble. The biggest red flag? OpenAI's internal "Code Red" memo in December, where Sam Altman reportedly told employees to drop everything as Google's Gemini eats into ChatGPT's dominance.
According to Noble, the threat is no longer theoretical. ChatGPT’s traffic has declined for two consecutive months, while Gemini has surged to around 650 million monthly users. He also cited Microsoft disclosures indicating that OpenAI burned through $12 billion in a single quarter. Separately, Deutsche Bank has projected that the company could accumulate losses of $143 billion before turning profitable.
Noble further noted that OpenAI’s video-generation tool, Sora, reportedly costs about $15 million a day to operate, with even the company’s lead engineer acknowledging that the economics are “completely unsustainable.”
ALSO READ: OpenAI falling apart? Legendary investor George Noble reveals why he thinks Sam Altman is in serious trouble and has an advice for AI startup founders
Two months later, another report suggested that OpenAI had begun taking preliminary steps toward a public listing. According to Reuters, the company is in early-stage discussions and is being valued at around $830 billion. The report added that chief financial officer Sarah Friar is targeting a stock market debut in 2027, with a potential IPO filing in late 2026.
Altman has also publicly acknowledged concerns many observers have raised about the sector. Speaking to The Verge last year, he warned of a possible AI bubble. “If you look at most bubbles in history, like the tech bubble, there was something real underneath it,” he said. “Tech mattered. The internet was a huge deal. But people got overexcited. Are investors as a whole overexcited about AI? In my opinion, yes.”
ALSO READ: Massive Deloitte workforce shake-up coming soon: Big Four firm to change job titles for over 1,80,000 employees in US. Check details
In discussing AI ads at Davos, Hassabis also seemed to take a subtle shot at his chief AI rival, saying he was "surprised" that OpenAI was turning to ads so quickly, reports Axios. In a tweet, OpenAI said that ChatGPT ads will only show up in ChatGPT free and Go tiers, and explained that ChatGPT's responses will not be influenced by ads and that users' conversations will remain private from advertisers.
Meanwhile, Demis Hassabis met India’s Minister for Electronics and Information Technology Ashwini Vaishnaw on the sidelines of the World Economic Forum (WEF) annual meeting in Davos, Switzerland. Hassabis shared details of the meeting in a post on social media platform X (formerly Twitter), saying he enjoyed the discussion on AI’s potential to benefit humanity and highlighted India’s importance in realising that goal. He also said he looked forward to continuing the conversation at the upcoming AI Impact Summit in New Delhi.
“Great to meet you Minister @AshwiniVaishnaw. Really enjoyed our discussion on AI’s incredible potential to benefit humanity & India’s important role in realising this,” Hassabis wrote, adding that he looks forward to further discussions at the summit.
ChatGPT plans to test ads
"In the coming weeks, we plan to start testing ads in ChatGPT free and Go tiers. We’re sharing our principles early on how we’ll approach ads–guided by putting user trust and transparency first as we work to make AI accessible to everyone," OpenAI said in a post on X, formerly Twitter."What matters most: Responses in ChatGPT will not be influenced by ads, ads are always separate and clearly labeled, your conversations are private from advertisers, plus, Pro, Business, and Enterprise tiers will not have ads," the post read.
The company said that its mission is "to ensure AGI benefits all of humanity," and that its pursuit of advertising is "always in support of that mission," as well as "making AI more accessible.
It probably isn't that simple, though. In 2024, OpenAI CEO Sam Altman said ads were a "last resort" for the company, and recent reports describe how Altman internally declared "code red," prioritizing efforts to make sure ChatGPT doesn't fall behind competitors, including Gemini.
ALSO READ: Jamie Dimon, CEO of US' largest bank JPMorgan, unhappy with global elites' meet in Swiss Alps’ Davos, says ‘you’re not doing a good job…’
Veteran investors warn about ChatGPT
Legendary investors have recently flagged concerns about potential financial risks at OpenAI. In November last year, tech analyst and professor Scott Galloway warned of a possible financial implosion at the company, calling it a “trainwreck from a financial management perspective.” He pointed out that while OpenAI is estimated to be generating around $13 billion in annual recurring revenue (ARR), its spending is reportedly more than twice that figure.This week too, noted investor George Noble stated that the company is "falling apart in real time" despite its eye-watering $500 billion valuation. In a scathing analysis titled ‘OPENAI IS FALLING APART IN REAL TIME’ on X, Noble highlighted what he calls unmistakable signs of trouble. The biggest red flag? OpenAI's internal "Code Red" memo in December, where Sam Altman reportedly told employees to drop everything as Google's Gemini eats into ChatGPT's dominance.
According to Noble, the threat is no longer theoretical. ChatGPT’s traffic has declined for two consecutive months, while Gemini has surged to around 650 million monthly users. He also cited Microsoft disclosures indicating that OpenAI burned through $12 billion in a single quarter. Separately, Deutsche Bank has projected that the company could accumulate losses of $143 billion before turning profitable.
Noble further noted that OpenAI’s video-generation tool, Sora, reportedly costs about $15 million a day to operate, with even the company’s lead engineer acknowledging that the economics are “completely unsustainable.”
ALSO READ: OpenAI falling apart? Legendary investor George Noble reveals why he thinks Sam Altman is in serious trouble and has an advice for AI startup founders
ChatGPT planning IPO soon
OpenAI may be laying the groundwork for one of the largest initial public offerings in history. There have been growing indications that the company is preparing to go public. In October 2025, Reuters reported that OpenAI was considering filing with securities regulators as early as the second half of 2026. When asked on a podcast whether the company would launch an IPO the following year, CEO Sam Altman responded at the time, “I don’t know.”Two months later, another report suggested that OpenAI had begun taking preliminary steps toward a public listing. According to Reuters, the company is in early-stage discussions and is being valued at around $830 billion. The report added that chief financial officer Sarah Friar is targeting a stock market debut in 2027, with a potential IPO filing in late 2026.
Altman has also publicly acknowledged concerns many observers have raised about the sector. Speaking to The Verge last year, he warned of a possible AI bubble. “If you look at most bubbles in history, like the tech bubble, there was something real underneath it,” he said. “Tech mattered. The internet was a huge deal. But people got overexcited. Are investors as a whole overexcited about AI? In my opinion, yes.”
ALSO READ: Massive Deloitte workforce shake-up coming soon: Big Four firm to change job titles for over 1,80,000 employees in US. Check details
