OpenAI reveals advertising revenue data, Israel still left out
OpenAI's advertising business has reached an annual revenue run rate of $1 billion just 200 days after launching ads in ChatGPT. The service has expanded to 47 countries, though Israel is not included.
OpenAI's advertising business has reached an annual revenue run rate of $1 billion, just 200 days after it began integrating ads into ChatGPT, the AI company announced on Monday.
"Today, tens of thousands of advertisers are using the platform, and it continues its global expansion," the company said in a press release.
The company has expanded the service's availability to 47 countries, mainly in Europe, the Middle East, and North Africa. Israel is not among them. OpenAI began integrating ads in the US in February, in a controversial move. Behind the decision were the company's ambitions to increase its revenue sources and generate income from free subscriptions as well, in light of its growing expenses and the approaching ambitious IPO.
According to the company, advertising is one of the pillars of its diversified business model, alongside paid consumer subscriptions, business products, and pay-as-you-go API access.
"Together, this offering allows individuals, developers, and businesses to choose how they access OpenAI products, including an ad-supported free tier that helps keep ChatGPT available to more than a billion weekly users," the company said.
OpenAI further noted that advertisers outside the US represent a growing share of advertising revenue. "Our advertiser base is also large. Small and medium-sized businesses now represent a significant part of our advertising business. Our next phase of growth will bring ChatGPT ads to more markets and introduce additional formats, objectives, buying options, and measurement capabilities."
