In December 2025, OpenAI, an entity I once admired for its incredible strides in artificial intelligence, has unexpectedly found itself under scrutiny. As someone deeply entrenched in the entrepreneurial world, witnessing the backlash over ChatGPT’s app suggestions, accused of resembling ads, is a stark reminder that even seasoned startups can stumble.
The crux of the problem, as reported by publications including TechCrunch, lies in how OpenAI introduced app recommendations to users during conversations. This feature was allegedly intended as an "app discovery tool." Instead, it caused alarm when suggestions appeared to lack relevance, such as recommending fitness-oriented apps like Peloton during unrelated discussions. This debacle sparked discontent, particularly among paying customers subscribed to the $200-per-month Pro Plan, who explicitly opposed the idea of advertisements within premium services.
Main Takeaways: A Breakdown for Entrepreneurs
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Reputation is Fragile
OpenAI’s error, despite their clarification stating these weren’t ads, paints a vivid picture of reputation management in business. Many felt betrayed, believing advertising to have infiltrated their paid plans. This serves as a cautionary tale for startups: unclear communication and user experience mishaps can erode trust almost instantaneously. Keeping customers informed and involved during feature tests should always be a priority. -
The Need for Clear Boundaries
Not giving users a choice to turn off app suggestions aggravated the issue. Empowering individuals by offering control over features, particularly experimental ones, is how businesses avoid alienating their core audience. Imagine rolling out something like ChatGPT’s app integration in a way where users opt in. OpenAI could have avoided much of the backlash. -
Monetization Challenges
OpenAI must target profitability but monetization strategies should align with user expectations. Users interpreting feature suggestions as poorly veiled advertisements will label the brand as insincere. When developing new revenue streams, particularly for free-tier customers, transparency and genuine value must dominate the strategy.
Rare Insight: Supporting Evidence and Lessons
From consulting startups for nearly half a decade, one pattern I’ve seen consistently is that monetizing user experiences without careful execution can backfire. The tech sector is rife with examples, and OpenAI’s situation might remind many of Snapchat’s negative consumer response when ads started disrupting users’ social feeds.
Here’s how missteps look in numbers:
- According to data reported on X (formerly Twitter) by engineers like Tibor Blaho, ChatGPT Android beta code suggested ads were “on the horizon.” Worse, early attempts were poorly integrated, leading suggestions to feel intrusive and unrelated.
- Viral posts garnered hundreds of thousands of impressions criticizing OpenAI. This scale of exposure, albeit tied to negativity, risks alienating paying users while inviting competition a free PR opportunity.
How Entrepreneurs Can Avoid Similar Pitfalls
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Be Transparent From the Start
Users need clarity. If testing out app recommendations, announce the experimental nature of the feature explicitly and offer opt-in settings. -
Know Your Audience
OpenAI misunderstood how existing customers might perceive its app suggestions. Paid-plan subscribers who expect no interference clash with freemium-tier users accustomed to feature tests. -
Communicate During Crisis
Customers are forgiving when confronted with honesty. OpenAI could have handled the outrage better by apologizing for perceived issues rather than attempting immediate justification. As entrepreneurs, never undervalue the power of apologizing directly.
Most Common Mistakes to Be Mindful Of
- Underestimating Paid Customer Loyalty: Scrutinizing complaints from paid-plan subscribers was key. Suggestions during unrelated conversations came across as disruptive behaviors, something many felt shouldn't exist on higher-tier products.
- Ignoring Relevance Metrics: Recommendations failing relevancy checks reflect poorly on any business decision involving AI or machine learning. Testing such features publicly without refining accuracy risks damage far outweighing its benefits.
- Failing to Provide User Control: Transparency aside, users feeling forced into engaging with unwanted features is always problematic. Entrepreneurs, take this as a functional reminder that users interacting deliberately with business innovations are far more likely to share positive responses.
Thinking Ahead with Competitive Advantage
Rival AI-powered platforms such as Anthropic’s Claude already position themselves without ads, marketing as user-focused products. Other giants, like Google and Meta, intensify AI monetization, but their efforts are clearer in intention, creating less backlash. OpenAI now faces both reputational recovery costs and increased pressure to compete without further alienating its base.
A lesson I’ve consistently shared with my network is to protect your business vision by valuing communication and customer-centric feedback loops. OpenAI’s scenario hopefully inspires others to insulate against such unpredictable reactions while integrating novel features.
As we close with my entrepreneurial lens reflecting on this controversy, I hope OpenAI moves carefully and recalibrates accordingly. For startup founders reading this, let OpenAI's misstep underscore that fostering user trust is paramount when operating at any scale, or risk undoing years of effort. ChatGPT’s next steps could salvage confidence, or confirm cynicism about monetizing innovation indiscriminately.
FAQ
1. Why did OpenAI face backlash for its app suggestions in ChatGPT?
OpenAI faced criticism after users reported that ChatGPT was making irrelevant app suggestions, like recommending Peloton during unrelated conversations, which resembled advertisements to many users. Read the TechCrunch article
2. Are app suggestions in ChatGPT advertisements?
OpenAI clarified that these app suggestions were not advertisements but experimental features designed to introduce relevant apps during conversations. Explore OpenAI’s app suggestion explanation
3. Why did paid subscribers feel betrayed by app suggestions?
Paying customers, especially those on the $200/month Pro Plan, were upset as they did not expect anything resembling ads in a premium service. Understand Pro Plan concerns
4. Was there a relevant example of user frustration regarding app suggestions?
Yes, one notable example was highlighted by Yuchen Jin, who shared a screenshot of ChatGPT recommending Peloton during an unrelated conversation. Check out the viral post on X by Yuchen Jin
5. Why did users dislike the feature even if it wasn’t advertising?
Users felt app suggestions lacked relevancy to their conversations and perceived them as intrusive. Additionally, there was no option to disable the feature. Learn more about user dissatisfaction
6. How did OpenAI respond to the backlash?
OpenAI acknowledged the poor relevancy of app suggestions and clarified their purpose, stating it was an experimental tool rather than a financial-driven advertisement. Read OpenAI’s response
7. What broader risks does this controversy pose to OpenAI?
Negative sentiment could drive users toward competitors like Google Gemini or Anthropic’s Claude, threatening OpenAI’s reputation and long-term vision for an app ecosystem. Dive into competitive risks
8. Have other users faced similar issues with app suggestions?
Yes, some reported ChatGPT repeatedly suggesting Spotify when they were already subscribed to Apple Music, which reinforced the perception of intrusive marketing. Understand repetitive suggestion complaints
9. What is OpenAI’s vision for app integration in ChatGPT?
OpenAI aims to replace traditional app discovery with apps running inside ChatGPT, creating a conversational ecosystem. Partners include Spotify, Expedia, Canva, and others. Explore OpenAI’s app platform goals
10. What lessons can entrepreneurs learn from OpenAI’s misstep?
Entrepreneurs should prioritize transparency, ensure feature relevancy, and offer user control during experimental rollouts to preserve trust and brand loyalty. Develop entrepreneurial insights
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.