OpenAI ChatGPT ads hit $1 billion annualized revenue run rate

OpenAI ChatGPT ads hit $1 billion annualized revenue run rate

Mon, August 31, 2026 at 4:21 PM GMT+3 2 min read

OpenAI announced Monday that its ChatGPT advertising operation has crossed $1 billion in annualized revenue run rate, a figure the company is holding up as validation of its business diversification strategy ahead of an anticipated IPO.

The ad business, which the company said is roughly 200 days old, sits alongside revenue streams including enterprise contracts, consumer subscriptions, and usage-based APIs. ChatGPT ads have launched in more than 40 countries, with OpenAI opening up its self-serve ad platform on Monday to marketers in India, Europe, the Middle East, and North Africa.

Ads appear for users on OpenAI's free tier and its Go subscription plan. OpenAI said the ads carry labels, are kept separate from how ChatGPT generates answers, and are invisible to advertisers in the sense that those buyers cannot see what users discuss privately.

"Our next phase of growth will bring ChatGPT Ads to more markets and introduce additional formats, objectives, buying options, and measurement capabilities," OpenAI said in a release. "We will also explore new ways for businesses to interact with consumers in more native ways in ChatGPT."

OpenAI began testing ads within ChatGPT in the U.S. in February. Rival Anthropic took notice, centering its first Super Bowl campaign on OpenAI's entry into advertising, according to CNBC.

OpenAI is targeting $2.5 billion in advertising revenue for the current year and is tracking toward annualized revenue exceeding $40 billion, roughly twice its run rate at the end of 2025. The company launched ads in India last week, one of ChatGPT's largest markets by weekly active users, with 50 brands participating at rollout and partnerships with agencies WPP and Omnicom. A self-serve ad manager for Indian marketers is set to open Sept. 4, with a daily minimum budget of ₹725 ($7.60).

OpenAI's broader advertising strategy has evolved since the February U.S. launch. The company introduced cost-per-click pricing earlier this year, adding a billing model that charges only when a user clicks an ad, alongside its original cost-per-thousand-impressions structure. The company also removed a $50,000 minimum spending requirement when it opened its self-serve Ads Manager to all U.S. businesses.

OpenAI reported $6.7 billion in revenue for the second quarter of 2026, up from $5.7 billion the quarter before. The company posted a net loss of $38.5 billion in 2025 on $13.07 billion in revenue and is working toward a planned 2027 IPO.