OpenAI advertising business passes $1 billion in annual revenue

Investing.com -- OpenAI said today that its advertising business has reached $1 billion in annualized revenue run rate, marking a major milestone for the artificial intelligence company as it prepares for an initial public offering.

The ad business, which launched roughly 200 days ago, adds to OpenAI's existing revenue sources including enterprise offerings, consumer subscriptions and usage-based application programming interfaces. The company said the achievement demonstrates its diversified business model as it faces pressure to justify its $852 billion valuation to potential investors.

OpenAI began testing advertisements within its ChatGPT chatbot in the United States in February. The move drew criticism from competitor Anthropic, which featured OpenAI's advertising strategy in its first Super Bowl campaign.

ChatGPT Ads are now available in more than 40 countries. The company said today it is expanding self-service access across India, Europe, the Middle East and North Africa. The advertisements appear for OpenAI's Go subscribers and free tier users, which represent the majority of its 1 billion weekly active users.

OpenAI said the ads are clearly labeled and do not affect ChatGPT's responses. The company stated that advertisers cannot access users' private conversations.

The company plans to expand ChatGPT Ads to additional markets and introduce new formats, objectives, buying options and measurement capabilities. OpenAI also said it will explore new methods for businesses to interact with consumers within ChatGPT.

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