OpenAI is beginning to display ads in ChatGPT in Japan, marking a shift as generative AI takes over roles traditionally held by search engines.

What happened: OpenAI will soon start showing ads in ChatGPT conversations in Japan, targeting advertisements based on users' interests. The company is working with advertising agencies to roll out the service.

Why it matters: As generative AI increasingly replaces search engines, control over ad placement is shifting. Until now, major platforms like Google have dominated advertising by linking it to search results. OpenAI's move signals that AI chat interfaces are becoming a significant channel for advertisers to reach users.

What to watch: This is part of OpenAI's broader effort to monetize ChatGPT and recoup large investments. The company has already begun testing ads in the United States, with restrictions on certain categories like health and mental health topics.