ChatGPT Ads Reaches $1 Billion Annualized Revenue Run Rate

ChatGPT Ads hit a $1 billion annualized run rate in under 200 days and is now expanding self-service access to India, Europe, the Middle East, and North Africa.

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Maisie Morrison

AgentLocker Editor

AI News
ChatGPT Ads Reaches $1 Billion Annualized Revenue Run Rate

OpenAI's advertising business inside ChatGPT has reached $1 billion in annualized revenue run rate. The company said this happened in fewer than 200 days after the ad platform launched.

Tens of thousands of advertisers are now buying ads through the service. OpenAI is also expanding where the platform can be used.

Starting today, advertisers can buy ChatGPT ads directly through Ads Manager in India, Europe, the Middle East, and North Africa. This adds self-service access in regions that previously relied on managed sales or partners.

How the Ads Fit Into ChatGPT

Advertising is one part of OpenAI's business model. The company also earns money through consumer subscriptions, enterprise tools, and usage-based APIs.

The free version of ChatGPT is supported in part by ads. OpenAI said this helps keep the app available to more than 1 billion weekly active users.

OpenAI explained that ads are shown based on the context of a conversation. In some countries, depending on user settings, ads may also draw on a person's broader activity in ChatGPT.

The company said this lets ads match what someone is asking about right now. It can also reflect longer-term interests, when a user allows it.

OpenAI pointed to a set of ad principles guiding how the system works. Ads are labeled and kept separate from ChatGPT's answers.

The company said advertising does not change or influence the answers ChatGPT gives. Advertisers also do not get access to people's private conversations.

Users can adjust how personalized their ad experience is. OpenAI said trust and relevance scores have stayed strong through the global rollout.

Growth From Pilot to Global Platform

ChatGPT Ads are now live in more than 40 countries. This includes support through OpenAI's own ads team as well as agency and technology partners.

Advertisers outside the United States now make up a growing share of total ad revenue. OpenAI said many of its largest advertisers run campaigns across several countries at once.

The number of partners supporting the platform has also grown. OpenAI now works with more than 50 technology and measurement partners.

Ads Manager launched in May and opened the platform to small and medium-sized businesses. OpenAI said these smaller advertisers now make up a large part of total ad activity.

The platform has added more advanced tools since launch. Cost-per-click and outcome-based bidding now make up most campaigns running on ChatGPT.

Pixel tracking and a Conversions API give advertisers ways to measure results. Product feeds, location targeting, and custom audience tools have also been added.

OpenAI shared two examples of results from advertisers. One ecommerce advertiser reported a 3x return on ad spend over a 28 day campaign.

A separate technology partner said more than 80% of ChatGPT traffic driven by its ads came from new customers. OpenAI said this shows the platform is reaching people who had not used the advertiser's product before.

Looking ahead, OpenAI said it plans to bring ChatGPT Ads to more countries. It also plans to add new ad formats, campaign goals, and buying options.

The company said it is exploring new ways for businesses to reach ChatGPT users directly inside conversations. OpenAI framed this as part of its broader push to make advertising in ChatGPT more accessible for businesses of every size.

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Maisie is a news writer at Agent Locker, covering the latest developments in artificial intelligence, emerging technology and the companies shaping the future.

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