ChatGPT Ads Hit $1 Billion ARR in Under 200 Days

OpenAI’s ChatGPT advertising business has reached a $1 billion annualised revenue run rate in less than 200 days after launch, with the platform now used by tens of thousands of advertisers across more than 40 countries. 

The company is expanding self-service advertising access to India, Europe, the Middle East and North Africa through Ads Manager, as it pushes ChatGPT Ads beyond its initial US rollout.

OpenAI first announced plans to introduce ads in January, saying it would begin testing them on ChatGPT’s Free and Go tiers in the US. 

The company formally started the test in February, initially limiting ads to logged-in adult users. OpenAI said Plus, Pro, Business and Enterprise users would not see ads, while ads would remain separate from ChatGPT’s answers.

The company then began expanding the programme beyond the US. 

In March, OpenAI said it was extending ads to Canada, Australia and New Zealand, before subsequently adding markets including the UK, Mexico, Brazil, Japan and South Korea. The expansion came after the company said early testing showed strong results across trust, relevance and overall user experience.

In May, OpenAI introduced Ads Manager, moving the advertising business towards a self-service model and opening it to a wider group of businesses. The company also expanded its ecosystem of technology and measurement partners, which has now grown to more than 50.

OpenAI said the ads system uses the context of a user’s current conversation to determine which advertisements may be relevant. 

Depending on the country and the user’s settings, it may also use information from the user’s broader ChatGPT experience. 

The company said ads are clearly labelled and separate from ChatGPT responses, and that advertising does not influence the answers generated by the system.