OpenAI’s push into advertising is off to a rapid start in just six weeks. According to a company spokesperson, OpenAI’s ad pilot for select U.S. ChatGPT users has crossed $100 million in annualized revenue. This highlights strong early demand for its nascent ad business, signaling a new revenue path beyond subscriptions.
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In January, OpenAI’s CEO Sam Altman announced that the company would begin testing ads in ChatGPT for free users in the U.S., marking its first step toward a new revenue model. The company also said that ads will not influence ChatGPT’s responses, and user conversations will remain private from advertisers.
Most Users Haven’t Even Seen an Ad Yet
A spokesperson stated that about 85% of users are currently eligible to see ads, but fewer than 20% are shown ads daily. This points to a significant opportunity to expand monetization within the existing user base.
Overall, analysts think ads could become a major new revenue driver for ChatGPT, thanks to its huge user base. However, bringing in ads might turn some users away and could hurt trust in the platform over time. Earlier, the company stated that ads have had no impact on user trust metrics, with low dismissal rates and improving relevance as the system learns from feedback.
Notably, OpenAI has already onboarded over 600 advertisers, with nearly 80% of small- and medium-sized businesses showing interest in ChatGPT ads.
What’s Next for OpenAI’s Ad Push?
Looking ahead, OpenAI plans to expand its ad pilot globally in the coming weeks, including to Australia, New Zealand, and Canada. Additionally, the ChatGPT maker is set to launch self-serve advertising tools in April to broaden access and drive further growth.
In line with this expansion, OpenAI has hired Dave Dugan, a former top advertising executive at Meta (META), to lead ad sales as the AI startup works to strengthen its ties with major advertisers. The high-profile hire highlights OpenAI’s urgent drive to create new revenue streams to support the substantial funding needed for its large-scale computing infrastructure.
What Are the Top AI Stocks?
With OpenAI’s ad business gaining momentum, the company still remains a private player. Using TipRanks’ stock comparison tool, investors can compare top listed AI companies and conduct further research to find the most promising options based on analyst ratings and insights. Below is a screenshot for reference.
