OpenAI says its ads business is booming as it marches toward an IPO
OpenAI has reached a $1 billion annualized revenue run rate for its ChatGPT advertising business less than 200 days after launch. The company is highlighting this growth as it prepares for a potential initial public offering, despite previous concerns from CEO Sam Altman regarding the use of ads in AI products.
Why it matters
This milestone signals a significant shift in the business model for generative AI companies, moving toward traditional ad-supported revenue streams to satisfy investor demands ahead of public listings.
OpenAI CEO Sam Altman once said that adding advertising would be "a last resort for us for a business model." Kevin Dietsch/Getty Images OpenAI's ad business is on a tear. ChatGPT ads have reached $1 billion in annualized revenue run rate, OpenAI said on Monday. Ads on OpenAI's chatbot launched less than 200 days ago. OpenAI is touting the speedy growth of its ad business as it prepares for an initial public offering. On Monday, OpenAI said that ad sales on ChatGPT have reached $1 billion in annualized revenue run rate in less than 200 days. "Advertising is one pillar of OpenAI's diversified business model, alongside consumer subscriptions, enterprise offerings, and usage-based APIs," the company said in a statement. The milestone for OpenAI's fledgling ads business comes as the AI company looks to drum up investor interest ahead of its much-anticipated IPO.
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