WSJ Tech News Briefing – Tech Minute: OpenAI to Test Ads in ChatGPT

Date: January 16, 2026
Host: Julie Chang

Episode Overview

In this Tech Minute, Julie Chang reports on three significant stories shaping the tech landscape:

1. OpenAI’s decision to begin testing advertisements within ChatGPT.
2. Legal controversies surrounding Xai’s Grok chatbot, including a high-profile lawsuit involving the use of AI-generated explicit images.
3. The repercussions of Saks Fifth Avenue’s bankruptcy on Amazon’s luxury retail ambitions.

Each segment is concise yet packed with insight into shifting business strategies, emerging ethical dilemmas, and the complex interplay between big tech and evolving market conditions.

Key Discussion Points & Insights

1. OpenAI to Begin Testing Ads in ChatGPT

[00:18–01:09]

• Major Business Shift: OpenAI will start featuring advertisements in the free and lowest-cost tiers of ChatGPT, signaling a new approach to monetizing the widely-used AI platform.
• CEO’s Prior Stance: Julie Chang recalls that Sam Altman, OpenAI’s CEO, had previously “expressed concerns about ads eroding user trust and had said he sees them as a last resort for the company's business model.”
• User Protections:
  • Ads “won’t influence chatbot answers.”
  • “User conversations won’t be sold to advertisers.”
  • Ads will not appear in “response to sensitive topics such as politics and mental health.”
  • Personalization of ads can be turned off by users.
  • No ads will be shown to users under 18.

Notable Quote:

“The move marks a major shift in the startup's business strategy as it looks for new revenue streams.”
— Julie Chang [00:25]

2. Legal Battle Over Xai’s Grok Chatbot and Deepfake Images

[01:10–01:49]

• Lawsuit Details: Conservative influencer Ashley St. Clair is suing Xai, Elon Musk’s AI company, claiming their Grok chatbot enables users to generate sexually explicit, non-consensual images (“deepfakes”) of her—including images of her as a child.
• Jurisdiction Tangle: St. Clair filed in New York, but the case moved to federal court; Xai counter-sued in Texas, insisting disputes must be handled there per their terms of service.
• Company Responses:
  • Xai did not respond to media requests.
  • X (formerly Twitter) stated in a blog post that “it has started blocking users from using Grok to undress images of real people in jurisdictions where it is illegal.”

Notable Quote:

“Her lawyer filed the case in New York County, where St. Clair lives, but it's been moved to federal court.”
— Julie Chang [01:39]

3. Saks Fifth Avenue Bankruptcy Impacts Amazon’s Luxury Retail Plans

[01:50–02:34]

• Amazon’s Investment at Risk: Amazon invested $475 million in Saks Fifth Avenue in 2024, contingent upon Saks listing merchandise on Amazon’s platform.
• Bankruptcy Developments:
  • Saks filed for bankruptcy, aiming to use arranged lender financing for restructuring.
  • Amazon tried to block this, alleging breach of agreement and claiming their equity investment is “now worthless.”
• Judicial Outcome:
  • A U.S. bankruptcy judge allowed Saks access to $400 million despite Amazon’s objections.
  • This development puts Amazon’s luxury ambitions in jeopardy.

Notable Quote:

“Amazon tried to block the move yesterday, saying Saks had breached their deal and that its equity investment was now worthless. But a U.S. bankruptcy judge was unmoved and gave Saks access to at least $400 million.”
— Julie Chang [02:28]

Timestamps for Important Segments

• [00:18] – OpenAI’s ad rollout and business strategy shift
• [01:10] – Lawsuit over Grok chatbot and AI-generated explicit images
• [01:50] – Saks Fifth Avenue’s bankruptcy and fallout for Amazon

Memorable Quotes

• On OpenAI’s business model:

  “Sam Altman previously expressed concerns about ads eroding user trust and had said he sees them as a last resort for the company's business model.”
  — Julie Chang [00:37]

• On legal complexities with AI:

  “Ashley St. Clair is seeking a temporary restraining order to stop Xai's chatbot from creating images that undress her.”
  — Julie Chang [01:23]

• On Amazon’s luxury setback:

  “Amazon tried to block the move yesterday, saying Sachs had breached their deal and that its equity investment was now worthless.”
  — Julie Chang [02:22]

Tone and Language

Julie Chang maintains a concise, factual, and business-like tone, focusing on delivering timely updates with clarity and minimal embellishment. Key corporate figures and spokespersons are referenced, with statements relayed neutrally and without editorializing.

Summary

This Tech Minute covers pivotal developments from industry leaders—OpenAI seeking new revenue streams through advertising, legal and ethical quandaries for Elon Musk’s Xai, and high-stakes financial consequences for Amazon following Saks Fifth Avenue’s bankruptcy. The segment demonstrates how tech, law, and finance are increasingly intertwined, with user privacy, ethical AI, and big investments all under the spotlight.