OpenAI’s advertising business has reached a $1 billion annualized revenue run rate, marking a major milestone for the company as it expands the role of advertising across ChatGPT.

The company said on Monday, August 31, that its advertising operation has continued to grow as more advertisers join the platform and ChatGPT expands into additional markets.

OpenAI began testing advertisements on ChatGPT in the United States earlier this year. Since then, the company has gradually expanded its advertising business and increased the number of companies able to purchase ads on the platform.

The $1 billion figure is an annualized run rate, meaning it reflects the pace of advertising revenue at the current level rather than $1 billion already collected during the year.

OpenAI is now expanding access to its advertising tools beyond the United States. Starting Monday, advertisers in India, Europe, the Middle East and North Africa can purchase ChatGPT advertisements directly through OpenAI’s Ads Manager.

The company said the self-service advertising platform has helped attract small and medium-sized businesses, which now account for a significant share of its advertising business.

For OpenAI, advertising represents another source of revenue alongside its paid ChatGPT plans, business services and API products.

The move also comes as the company continues to expand internationally and look for ways to increase revenue as usage of its artificial intelligence products grows.

OpenAI’s advertising strategy has attracted attention because advertisements are becoming part of an AI platform where users increasingly rely on generated responses to find information, complete tasks and make decisions.

The company has said that its advertising business is being developed alongside its broader commercial strategy as it seeks to build multiple revenue streams around ChatGPT.

The latest milestone comes at a time when competition in the AI industry remains intense, with companies investing heavily in computing infrastructure, models and new commercial products.

For OpenAI, reaching a $1 billion annualized advertising run rate gives the company a rapidly growing new source of income while it continues expanding ChatGPT's global reach.

With Ads Manager now available to advertisers across more regions, the company is preparing to push the advertising business further beyond its initial US launch.

The expansion means businesses in markets including Africa, Europe, India and the Middle East can now access OpenAI's advertising platform directly, opening a much wider market for ChatGPT ads.