OpenAI said ChatGPT Ads has reached a $1 billion annualized revenue run rate less than 200 days after launch, as the advertising platform expands internationally and attracts tens of thousands of advertisers.
Starting later today, advertisers will be able to purchase ChatGPT ads directly through Ads Manager across India, Europe, the Middle East and North Africa.
The expansion extends a platform that is now available in more than 40 countries through OpenAI’s Ads Solutions team, agencies and technology partners.
OpenAI said advertisers outside the U.S. represent a growing portion of ChatGPT Ads revenue, while many of its largest advertising customers are already using the platform across multiple markets.
Advertising has become one component of a broader OpenAI business model that also includes consumer subscriptions, enterprise products and usage-based APIs.
The company said the advertising-supported free tier helps make ChatGPT available to more than 1 billion weekly active users.
ChatGPT Ads is designed around the conversations in which users are already evaluating products, services and other decisions.
Users may come to ChatGPT to select software, plan a home renovation, search for a job, learn a language, or explore a hobby. The advertising system can use the current conversation context to surface relevant sponsored information.
Depending on the market and the user’s settings, the system may also use context from a broader ChatGPT experience to personalize advertising.
OpenAI emphasized that ads are clearly labeled and remain separate from ChatGPT’s answers. Advertising does not influence ChatGPT’s responses, and advertisers do not access users’ private conversations.
The company has also been expanding the infrastructure behind the advertising business.
Its ecosystem now includes more than 50 technology and measurement partners.
The launch of Ads Manager in May opened direct access to smaller businesses, and OpenAI said small and medium-sized companies now account for a material portion of the advertising business.
The platform has also moved beyond its initial advertising model with more sophisticated bidding, targeting and measurement capabilities.
CPC and outcome-optimized bidding now represent the majority of campaigns. Pixel and Conversions API capabilities support measurement and optimization, while product feeds, geographic and platform targeting and custom audiences give advertisers additional ways to reach potential customers.
OpenAI pointed to early performance examples as evidence of the platform’s commercial potential.
One ecommerce advertiser generated a 3x return on ad spend across its campaigns during a 28-day period, while one technology partner reported that more than 80% of traffic generated through ChatGPT advertising came from new customers.
OpenAI plans to continue expanding ChatGPT Ads into additional markets while developing new advertising formats, campaign objectives, buying options and measurement tools.
The company is also exploring more native ways for businesses to interact with consumers inside ChatGPT as users increasingly use the product to research needs, compare alternatives and make purchasing decisions.
Reaching a $1 billion annualized revenue run rate in less than 200 days gives OpenAI another rapidly scaling revenue stream alongside subscriptions, enterprise offerings and APIs, while the international rollout and expansion of self-service advertising could significantly broaden the potential advertiser base.
