OpenAI is testing ads on ChatGPT in Japan to diversify revenue as AI competition intensifies and development costs soar.

What happened: OpenAI has begun a trial of advertisements on ChatGPT's free version and Go plan (¥1,400 per month) in Japan. Ads will appear in a separate section and will not influence ChatGPT's responses. The company is partnering with Japanese marketing firm Dentsu Digital and other partners to provide the ads. Users under 18 and those on higher-priced tiers will not see ads.

Why it matters: OpenAI is expanding its revenue sources amid cutthroat competition in AI development, which requires huge investment. The ad trial in Japan follows testing that began in the United States in February and gradually expanded to other countries.

What to watch: OpenAI announced in May plans to roll out ads in five countries, including Japan, within weeks. The trial will reveal whether ad-supported tiers can meaningfully offset the operational costs of running a large-scale AI service.