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It's hard not to see the sort of flailing about with acquisitions and choices as anything but a lack of confidence.
Ads are just the capitalist's patriotic ascent into the "I know this is useless to society, but people sure love to talk about it!" capitalization.
Sadly, this doesn't surprise me. ChatGPT is scam tech that doesn't have a way of making legitimate revenue.
Once ads start to make their way up to the Plus paid tiers (and they will), I’ll probably switch to something else like local LLM on my home machine or put something together myself to use a non adware LLM via API (for example with Replicate). Especially if these are just intended to be spammy blocks at bottom or in between discussion threads, or worse, audio conversations.

From what I’ve read, this will be about ads in chat as suggestions? So “active” ads on response?

Why not go the approach of passive background “agentic” ad suggestions like, “hey, we know X, Y, and Z about you - would you like us to monitor certain brands related to your interests for deals and allow advertisers to pitch these deals to you?” And make these hyper specific so you can opt in.

I, like many people who dabble with music as a hobby, have GAS (gear acquisition syndrome) - why not let me toggle something like “ok, I don’t want ads, but if any of your partnered brands have a sale or good deal on X, feel free to email me, and use your ChatGPT smarts to pitch me on why it’s a good deal and how it suits my current gear set up”

I used ChatGPT to set up my guitar pedal board so surely this isn’t a huge leap.

Advertising is a two way street into the content and meaning behind your otherwise private conversations with a chatbot.
Truth is I even shocked myself by dropping my ChatGPT subscription

Between Claude and Gemini it just wasnt needed.

Will openai be the MySpace of this era?

ChatGPT with ads (in this initial proposed form) still seems better than Gemini with these stupid video recommendations I can't turn off, because they do influence the answer itself (the model itself might give me less details just to make me watch the video).
I'm shocked! Shocked to find that gambling is going on in here!
Seeing this today made me sad. I expect people to naturally flood back over to Google in droves.
This sounds desperate.
All LLM-search tools are slathered in ads already via LLM-SEO hacking.

The only difference here is that they will be providing a direct paid channel in this case and will get a cut instead of paying for compute. If it's responsibly disclosed it may even lead to a net more transparent shopping experience for the average user.

Deepseek local and Claude are good enough for me. Gemini is also very good, but I'm aware of Google's Ad Machine there..

It's been interesting to see what was a quality leading product fail to compete and lose market share.

"This is the worst AI is going to be"
Right "it only can get better from here". If by "better" you mean "stay at the same ability but make more money through pay walling and ads".
Ads should 100% subsidize free tiers, just like every other “free” service. They are running this at a deficit, no?
Based on the news and conversations I have with people, the general population is having intimate conversations with these chatbots. In the name of ads, all this data will be mined, and humans will be tagged with categories, and that info will be sold. It’s not if, it’s when.