The advertising business has become one of OpenAI’s fastest-growing segments. Back in March, the company reported that its U.S. pilot program had reached $100 million in annualized revenue within its first six weeks. That figure has now increased tenfold, according to Reuters.
OpenAI began testing ads in ChatGPT in the U.S. in February. Ads are now available in more than 40 countries, and the company is expanding self-serve advertising for businesses in India, Europe, the Middle East, and North Africa.
For OpenAI, this marks a significant shift in its business model. The company generates revenue not only from ChatGPT subscriptions but also from enterprise products and APIs; however, advertising allows it to monetize users of the free version without requiring them to switch to paid plans.
Ads are shown to free ChatGPT users and Go plan subscribers. OpenAI states that ads are clearly separated from the chatbot’s responses and do not influence their content. According to the company, advertisers also do not have access to users’ private conversations.
The model has already become the subject of public competition among the largest AI developers. In February, Anthropic ran a Super Bowl ad mocking OpenAI’s decision to monetize ads within ChatGPT. Now, OpenAI intends to scale up its efforts. The company is developing new ad formats, targeting tools, and performance metrics, and is exploring ways for businesses to engage with potential customers directly within ChatGPT.
The growth in advertising revenue takes on particular significance against the backdrop of OpenAI’s rapidly rising valuation. According to Reuters, in March the company raised $122 billion at a valuation of $852 billion. For investors, the ability to turn ChatGPT’s billion-strong audience into a sustainable and diversified business is becoming one of the key arguments in favor of such a valuation.
At the same time, OpenAI is effectively entering territory that has been controlled for decades by Google, Meta, and other internet platforms: the battle is now not only for AI users but also for companies’ advertising budgets. The rapid growth of this new venture shows that ChatGPT is beginning to compete for this money not as a search engine or social network, but as a new interface between consumers and businesses.
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