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OpenAI's ad business reaches $1 billion annualized revenue run rate

OpenAI's advertising business hit $1 billion in annualized revenue run rate within about 200 days, signaling growth ahead of a potential IPO.

AI News Feed · 2026-08-31 23:44

The artificial intelligence company is preparing for what is expected to be a massive initial public offering and faces pressure to justify its $852 billion valuation to investors. OpenAI said its ad business, which is roughly 200 days old, builds on existing revenue engines such as enterprise offerings, consumer subscriptions, and usage-based application programming interfaces.

OpenAI began testing ads within its ChatGPT chatbot in the United States in February, a decision that was both highly anticipated and controversial. Digital advertising has long been a cash cow for other major tech companies like Google and Meta, but OpenAI's move drew ridicule from its chief rival, Anthropic, which made the ad push the focus of its first Super Bowl campaign.

ChatGPT Ads are now available in more than 40 countries. OpenAI said it is rolling out self-service access across India, Europe, the Middle East, and North Africa as of Monday. Ads within the chatbot appear for OpenAI's Go subscribers and its free tier, which makes up the vast majority of its 1 billion weekly active users.

OpenAI said the ads are clearly labeled and do not influence ChatGPT's answers, and that advertisers do not have access to users' private conversations.

"Our next phase of growth will bring ChatGPT Ads to more markets and introduce additional formats, objectives, buying options, and measurement capabilities," OpenAI said in a release. "We will also explore new ways for businesses to interact with consumers in more native ways in ChatGPT."