OpenAI is touting ads as ‘diversified business model’ as it gears up for its massive IPO

ChatGPT-maker OpenAI announced recently that its advertising business has reached a $1 billion annualised revenue rate, just 200 days after its launch, according to a report by CNBC. The company is positioning this milestone as a proof of its ‘diversified business model’ as it prepares for a massive initial public offering (IPO). OpenAI is under pressure to justify its $852 billion valuation to investors, with ads now joining enterprise offerings, consumer subscriptions, and usage-based APIs as key revenue streams.

How OpenAI’s ad business started