OpenAI’s ChatGPT Ads Business Hits $1bn Annualized Revenue Run Rate

OpenAI  says its advertising business, ChatGPT Ads, has reached a $1 billion annualized revenue run rate, as the company expands its advertising operations beyond the United States.

The company began testing advertisements on ChatGPT in the U.S. earlier this year and has since expanded its advertiser base and entered additional markets. The move comes as OpenAI looks to advertising as a potential driver of revenue growth ahead of a possible initial public offering.

Beginning Monday, advertisers in India, Europe, the Middle East and North Africa will be able to purchase ChatGPT ads directly through OpenAI’s Ads Manager, following its rollout in the U.S.

OpenAI said its Ads Manager has helped attract more small and medium-sized businesses (SMBs) to the platform, with these businesses now accounting for a “material share” of its advertising business.

The company also said advertisers outside the U.S. are contributing an increasing share of advertising revenue, although it did not provide specific figures.

ChatGPT ads are currently shown to users on the platform’s free tier and lower-priced Go plan. In April, OpenAI reported that its U.S. advertising pilot had surpassed a $100 million annualized revenue run rate within six weeks of launching.

The rapid growth positions OpenAI as a potential challenger to established digital advertising giants, including Google parent Alphabet and Meta, which operate some of the world’s largest online advertising businesses.

OpenAI’s expansion into advertising comes as the company continues to explore ways to strengthen its financial position and support the significant costs associated with developing and operating advanced AI systems.

The company also confidentially filed for a U.S. initial public offering earlier this year, with reports suggesting it could go public as early as 2027.