OpenAI is scaling back its plans to enable direct shopping within ChatGPT, signaling a shift in its high-profile strategy to embed checkout functionality into its chatbot. A spokesperson for the company stated that OpenAI will no longer allow users to place orders directly from product listings within ChatGPT search results. Instead, the focus will shift to completing transactions within specialized third-party applications that integrate with ChatGPT.

The reason for this strategic pivot remains unclear, though currently only a small number of merchants were selling products using the built-in checkout feature. A person familiar with the matter indicated that internal findings at OpenAI revealed that while users research products within the chatbot, they do not actually complete purchases using it.

Just six months ago, OpenAI was heavily promoting in-chat checkout as a major commercial opportunity, claiming it marked a significant shift in how users shop online with AI. At that time, the company had established partnerships with leading e-commerce and payment firms, including Etsy, Shopify, and Stripe.

When OpenAI first introduced the checkout feature for U.S. users last September, it announced that products from millions of online stores would soon be available for direct purchase within ChatGPT. The company planned to generate revenue by charging merchants sales commissions and to continuously upgrade the feature, including adding multi-item shopping carts and expanding to more regions.

In contrast, processing checkouts through applications means that, at least initially, the range of partner retailers will be more limited. Early partners that have developed e-commerce applications for ChatGPT include Instacart, Target, Expedia, and Booking.com. In December, Instacart enabled ChatGPT users to link their accounts and complete payments directly within the chat interface.

An OpenAI spokesperson stated in a declaration: "We are iterating on ChatGPT's commerce offerings to better align with the real-world scenarios of merchants and users. The instant checkout feature will be migrated to the application side to create a smoother purchasing process. We thank our partners for exploring this with us and look forward to making continued progress and sharing more updates in this area."

The spokesperson added that the company will prioritize optimizing product search and discovery capabilities within ChatGPT.

This adjustment means consumers can no longer purchase items directly from product lists. Instead, they will need to complete payments through a retailer's application or be redirected to the retailer's official website.

Shopify and Etsy did not respond to multiple requests for comment. Stripe declined to comment.

This strategic shift in OpenAI's nascent checkout business highlights the practical challenges of integrating AI with complex e-commerce operations. Simultaneously, it increases the importance of its recently launched advertising business—another primary method for OpenAI to generate significant revenue from its vast user base of free users. (It remains unclear whether OpenAI will take a commission from sales facilitated through ChatGPT applications.)

For OpenAI and other AI companies, deploying large-scale shopping functionality within chatbots presents significant difficulties. Merchant data, such as pricing and inventory information, requires standardization and continuous updates to ensure the chatbot accesses accurate data. Furthermore, e-commerce and payment institutions need safeguards against AI-initiated fraud or erroneous transactions.

OpenAI had previously attempted to gain access to a massive product catalog by partnering with online marketplace Etsy and e-commerce software provider Shopify. These companies already possess mature systems connected to millions of merchants, which could分担 some of the heavy lifting. OpenAI also collaborated with payments giant Stripe to develop a rule framework called the Agentic Commerce Protocol for the merchants, payment institutions, and AI companies involved in transactions.

According to a person familiar with the matter, OpenAI and Stripe will continue to advance this protocol to support application-based shopping features.

A report by The Information in January stated that for the few merchants already integrated with the checkout feature, OpenAI still needed to provide hands-on assistance to get the systems operating correctly. Other signs of slow progress had emerged: as of February, OpenAI had not yet established a system for collecting and remitting state sales taxes—a necessary step if shopping volume were to surge.

More broadly, some merchants remain cautious about AI shopping features, and it is still unknown whether consumers are willing to complete payments through an AI chat interface. However, during February earnings calls, both Shopify and Etsy still cited their AI checkout collaborations as potential growth opportunities. Etsy had previously stated that, to facilitate shopping on ChatGPT, it was covering the commission fees that merchants would otherwise owe to OpenAI.

Yet, at an investor conference on Tuesday, Shopify President Harley Finkelstein noted that out of its millions of merchants, only about a dozen are currently selling via AI tools, attributing the slow expansion to limitations on the AI company side. (Shopify's software supports merchant sales through ChatGPT, Google Gemini, and Microsoft Copilot; the latter two announced their respective chat-based checkout features earlier this year.)

Finkelstein said, "The only limitation right now is that we are waiting for further opening of access points by the agent applications."

This adjustment to OpenAI's commerce strategy comes as e-commerce giant Amazon.com announced last Friday that it will make an initial investment of $15 billion in OpenAI. The announcement stated that Amazon can use OpenAI's custom models in its consumer-facing applications, including its shopping chatbot Rufus, but did not mention Amazon selling products within ChatGPT.

Last year, Amazon blocked AI applications, including ChatGPT, from scraping its product information and displaying Amazon products in chat responses. However, Amazon CEO Andy Jassy has expressed willingness to collaborate with external AI shopping tools if the terms are reasonable.