OpenAI's advertising business has reached a $1 billion annualised revenue run rate, marking a major milestone as the company expands ads on ChatGPT and builds a new source of revenue.
OpenAI began testing ads on ChatGPT in the US earlier this year. The company has since expanded its advertiser base and is now opening its advertising platform to more markets.
Starting Monday, businesses in India, Europe, the Middle East and North Africa can purchase ChatGPT ads directly through OpenAI's Ads Manager, a tool that had already been rolled out in the US.
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According to Reuters, OpenAI said small and medium-sized businesses now account for a “material share” of its advertising business.
The company also said advertisers outside the US represent a growing share of ad revenue, although it did not provide a specific figure.
Ads Expand Beyond The US
ChatGPT currently shows ads to users on its free tier and lower-priced Go plan. The advertising business has grown rapidly since its launch in the US.
In April, OpenAI said its US advertising pilot had crossed a $100 million annualised revenue run rate within six weeks of its launch.
The expansion puts OpenAI in competition with established advertising giants such as Alphabet's Google and Meta, which operate two of the world's largest digital advertising businesses.
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For OpenAI, advertising is becoming another important revenue stream alongside consumer subscriptions, enterprise offerings and usage-based APIs. The company is betting on the business to support overall revenue growth as it expands its global user and advertiser base.
The new revenue stream also comes as OpenAI prepares for its next phase of growth. The company has confidentially filed for a US initial public offering, according to Reuters, with a potential listing expected in 2027 or earlier.
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