OpenAI hires its first-ever CMO, foreshadowing an ad rollout

The news: OpenAI has hired its first-ever CMO, Kate Rouch, signaling an effort to step up its brand messaging and bring advertising to its products.

• Rouch has deep ties in the digital advertising industry, having worked at Meta for 11 years, where she eventually served as global head of brand marketing for its suite of apps. She then worked as CMO of cryptocurrency exchange Coinbase, elevating its brand to Super Bowl exposure.

OpenAI and advertising: News of the hire comes days after OpenAI CFO Sarah Friar accidentally let slip that the company is exploring advertising as a potential revenue stream. OpenAI’s costly business model has increased pressure to monetize its product, and speculation is growing that it’s looking to pull an advertising lever.

• One way OpenAI has been testing the advertising waters is through search products. The company began offering search features in ChatGPT in November and could have broader ambitions to target the browser market, positioning itself as a direct competitor with Google—which is also relying on AI-powered search results.
• Another member of the OpenAI C-suite—Chief Technology Officer Kevin Weil— oversaw ad-supported product launches at Instagram and X. CEO Sam Altman has reportedly softened his resistance to advertising features but still favors a careful rollout to protect the user experience.
• Beyond advertising revenues, OpenAI has a relatively scant brand presence for a company that is almost synonymous with the current AI boom. While hardware manufacturers and software providers like Apple and Adobe have centered AI in their advertising, OpenAI hasn’t yet prioritized a consumer-facing identity.

Our take: If OpenAI has ambitions for a Super Bowl ad, it may have to wait until 2026, as ad space for the Big Game has sold out. But Rouch’s hiring and recent statements from executives suggest that the company is looking to ramp up its advertising efforts in a significant way as market pressures force it to search for additional revenues.

An OpenAI advertising product is likely to generate significant interest. ChatGPT and Google Chrome rival each other in monthly usage, and advertisers have eagerly adopted AI-powered features on platforms like Facebook.