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TechOpenAI ad business hits $1B annualized revenue run rate ahead of IPO
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OpenAI announced on Monday that its advertising business has reached a $1 billion annualized revenue run rate, a milestone the company is using to demonstrate its diversified business model as it prepares for a highly anticipated IPO. The AI firm, which is under pressure to justify its $852 billion valuation, began testing ads within its ChatGPT chatbot in the U.S. in February. The move was controversial and drew ridicule from rival Anthropic, which aired a Super Bowl commercial criticizing OpenAI's ad push. ChatGPT Ads are now available in over 40 countries, with self-service access rolling out in India, Europe, the Middle East, and North Africa. Ads appear for Go subscribers and free-tier users, who make up the vast majority of OpenAI's 1 billion weekly active users. OpenAI stated that ads are clearly labeled, do not influence ChatGPT's answers, and that advertisers cannot access users' private conversations. The company plans to expand to more markets and introduce new ad formats and measurement capabilities.
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OpenAI CEO Sam Altman arrives for a meeting at the White House in Washington, D.C., U.S., July 30, 2026. Nathan Howard | Reuters
OpenAI on Monday announced that its advertising business has reached $1 billion in annualized revenue run rate, a milestone the company is highlighting as evidence of its "diversified business model."
The artificial intelligence company is preparing for what is expected to be a massive IPO and faces pressure to justify its $852 billion valuation to investors. OpenAI stated Monday that its ad business—now roughly 200 days old—builds on existing revenue streams, including:
- Enterprise offerings
- Consumer subscriptions
- Usage-based application programming interfaces (APIs)
Advertising Rollout and Market Response
OpenAI began testing ads within its ChatGPT chatbot in the U.S. in February, a move that was both highly anticipated and controversial. Digital advertising has long been a major revenue driver for tech giants like Google and Meta, but OpenAI's decision drew criticism from its chief rival, Anthropic, which made the ad push the focus of its first Super Bowl campaign.
Current Reach and Availability
ChatGPT Ads are now available in more than 40 countries. On Monday, OpenAI announced it is rolling out self-service access across:
- India
- Europe
- The Middle East
- North Africa
Ads within the chatbot appear for OpenAI's Go subscribers and its free tier, which represents the vast majority of its 1 billion weekly active users.
Privacy and Transparency
OpenAI confirmed Monday that its ads are clearly labeled and do not influence ChatGPT's answers. Advertisers do not have access to users' private conversations.
Future Plans
"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."
—CNBC's Kate Rooney contributed to this report
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OpenAI launches ChatGPT ads in India, hits $1 billion ad revenue run rate ahead of IPO