The bull case for OpenAI to build an ads business just got a lot more real.
The company is developing a sleek AI companion device, born out of its acquisition of former Apple designer Jony Ive’s design firm, with plans to ship 100 million units, according to The Wall Street Journal.
If it takes off, OpenAI could become as ubiquitous as the smartphone.
But moonshots like this aren’t cheap. OpenAI isn’t printing money, it’s torching it. The company told investors it won’t turn a profit until 2029, and expects to lose $44 billion along the way, per The Wall Street Journal.
That’s where advertising comes in.
It’s one of the few high-margin businesses that can absorb the cost of scaling both AI and hardware.
With ChatGPT, the GPT Store and now a possible always-on device, OpenAI is steadily building an ecosystem full of engagement and signal-rich user behavior — exactly what advertisers want.
And while OpenAI hasn’t said much about ads, it’s building the kind of ecosystem that rarely stays ad-free for long.
