OpenAI’s ad business hits $1 billion within 200 days as ChatGPT expands promotions across 40+ countries

OpenAI’s advertising business has reached a $1 billion annualised revenue run rate, marking a rapid rise for a business that began testing ads on ChatGPT only about 200 days ago. The milestone comes as the artificial intelligence company expands advertising to more markets and prepares for what could be one of the largest technology initial public offerings.

OpenAI said the advertising business is now part of a broader revenue mix that includes enterprise products, consumer subscriptions and usage-based application programming interfaces. The company is also seeking to demonstrate the strength and diversity of its business as it faces scrutiny over its reported $852 billion valuation.

ChatGPT ads expand across 40 countries

OpenAI began testing advertisements inside ChatGPT in the US in February. The move represented a significant shift for a chatbot that had previously relied largely on subscriptions and business services for revenue.

ChatGPT ads are now available in more than 40 countries. OpenAI said on Monday that it is expanding self-service advertising access across India, Europe, the Middle East and North Africa.

Advertisements are shown to users on ChatGPT’s free tier and its Go subscription plan. These groups account for the vast majority of ChatGPT’s roughly 1 billion weekly active users, giving advertisers access to a potentially enormous audience.

OpenAI said advertisements are clearly identified and separated from ChatGPT’s responses. It also said advertisers cannot access users’ private conversations and that ads do not influence the answers generated by the chatbot.

“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.”

OpenAI’s $1 billion ad revenue milestone

The $1 billion annualised revenue run rate comes roughly 200 days after OpenAI began testing ads, highlighting how quickly the company has built a new commercial channel around ChatGPT.

Advertising is already a major source of revenue for established technology companies including Google and Meta. OpenAI’s decision to enter the market, however, drew criticism from Anthropic, one of its main AI rivals, which made the issue a central theme of its first Super Bowl advertising campaign.

For OpenAI, the growing advertising business adds another source of revenue as the company continues to invest heavily in computing infrastructure and AI development.

The company has increasingly sought to diversify beyond its consumer subscriptions, with enterprise products and API usage forming other important parts of its commercial operations.

ChatGPT faces tougher EU digital rules

The advertising milestone comes as ChatGPT also faces increased regulatory scrutiny in Europe.

The European Union on Monday designated ChatGPT as a “very large” online platform under the Digital Services Act, subjecting the AI chatbot to additional legal obligations. It is the first AI chatbot to receive the designation.

Brussels also added Reddit and Roblox to the same category. The designation applies to platforms and search engines with more than 45 million monthly active users in the EU.

"ChatGPT, Reddit and Roblox will now be held to a higher standard of scrutiny and accountability in the European Union, in line with their large impact on our citizens and society," EU technology chief Henna Virkkunen said.

What the EU rules mean for ChatGPT

The three platforms have four months to comply with the additional requirements under the Digital Services Act.

The rules require designated services to identify and mitigate risks linked to illegal content, the effects of their platforms on minors, users’ physical and mental well-being, fundamental rights, electoral processes and public security.

The European Commission has brought ChatGPT under the DSA framework by classifying it as a search engine.

For OpenAI, the regulatory development adds another layer of scrutiny as the company scales ChatGPT globally and builds new revenue streams around the platform.

With advertising revenue reaching a $1 billion annualised run rate in its first months, OpenAI is now expanding a business model that combines consumer subscriptions, enterprise services, API usage and advertising while navigating increasingly stringent regulation in one of its key international markets.