ChatGPT may watermark AI images for free users only

OpenAI is testing watermarks on AI-generated images in ChatGPT, with evidence found in the Android beta version suggesting the feature may be limited to free users. The move could represent a significant shift in how AI companies monetize their image generation services, potentially forcing users to upgrade to paid plans to avoid watermarked content.

What you should know: The watermark feature was discovered through code references and beta testing, though its final implementation remains unclear.

• Android Authority spotted a “save without watermark” option in the latest ChatGPT beta for Android, originally identified by X user Tibor Blaho who found “image-gen-watermark-for-free” in the app’s code.
• During testing, users were able to remove watermarks using the free version, but this functionality will likely change before the feature launches publicly.
• The watermarking appears designed exclusively for free ChatGPT users, while paid subscribers would presumably generate unwatermarked images.

Why this matters: OpenAI’s potential watermarking strategy reflects broader industry pressures to monetize AI services as operational costs mount.

• AI providers are transitioning from funding-based models to subscription plans, requiring clear incentives for users to upgrade from free tiers.
• Currently, no major AI image generators watermark their outputs, making this a potentially controversial first move that could either backfire or prompt industry-wide adoption.
• The feature would create a tangible benefit for paid users, addressing the challenge of differentiating subscription tiers in AI services.

The competitive landscape: If implemented, ChatGPT’s watermarking could reshape the free AI image generation market.

• Most premium AI image generators like Midjourney, Gemini, and Freepik already require paid subscriptions for image creation.
• Free alternatives like Grok exist but typically offer limited image generations or longer wait times.
• ChatGPT’s market dominance means other providers might follow suit if the watermarking strategy proves successful.

What’s next: The feature remains in beta testing with no confirmed launch date, and OpenAI has not publicly announced or confirmed the watermarking plans.