OpenAI says its ChatGPT ad business hits a $1 billion annual run rate

OpenAI’s advertising business has reached an annualized revenue run rate of $1 billion, according to the company. OpenAI touts this as proof of its diversified business model.

The company is preparing for a major IPO and is under pressure to justify its $852 billion valuation. The roughly 200-day-old advertising business is meant to add to existing revenue streams like corporate customers, subscriptions, and usage-based APIs. OpenAI began testing ads in ChatGPT in the US in February. Follow The Decoder for AI news, background stories and expert analyses.