OpenAI's ChatGPT ads hit $1 billion run rate as IPO plans loom

OpenAI reported that advertising on ChatGPT has generated an annualized revenue run rate of $1 billion after less than 200 days, forming a significant slice of its diversified income streams that include consumer subscriptions, enterprise deals and usage-based APIs. The milestone is intended to boost investor interest as the company prepares for a potential initial public offering, which could occur later this year. Rival Anthropic ridiculed the ad rollout in a Super Bowl commercial, prompting CEO Sam Altman—who earlier said AI-powered ads feel "uniquely unsettling"—to label the satire "funny" yet "clearly dishonest."

In August, OpenAI expanded its ad offering with a self-service tool covering India, Europe, the Middle East and North Africa, and now serves users in more than 40 countries. The firm has recently shut down side projects such as the Sora app and has seen senior departures, including COO Brad Lightcap, as it refocuses on core revenue sources.