OpenAI's Ad Business Hits $1 Billion Annualized Revenue Run Rate.

OpenAI announced its advertising business has hit a $1 billion annualized revenue run rate. The company reached this milestone in less than 200 days.

OpenAI is touting the growth as proof of its diversified business model as it prepares for a massive initial public offering. The ChatGPT Ads service is expanding beyond the U.S. to more than 40 countries, with self-serve access rolling out across India, Europe, the Middle East, and North Africa. OpenAI states advertisements remain clearly labeled, do not influence ChatGPT’s responses, and advertisers do not access users’ private conversations.

The company plans to add more formats, buying options, measurement capabilities, and native ways for businesses to engage with consumers inside ChatGPT. OpenAI faces scrutiny over its valuation, cited around $852 billion, and competition from rivals like Anthropic.