OpenAI's ad business hits $1 billion run rate

Summary

CNBC's Kate Rooney discusses OpenAI's advertising business hitting a $1 billion annualized run rate less than 200 days after launch, up from $100 million in March. The ramp positions OpenAI as a real competitor to Google and Meta for digital ad dollars and supports its diversification and IPO narrative. She also covers OpenAI cutting off model access for a startup tied to Elon Musk, escalating the Altman-Musk feud and raising questions about AI provider neutrality.

• OpenAI advertising annualized run rate tops $1 billion, up from $100 million in March.
• Ads are available in more than 40 countries and expanding in India, Europe, Middle East and Africa.
• OpenAI says the ad model supports diversification ahead of an IPO and data center spending.
• A free ad-supported ChatGPT tier monetizes 1 billion weekly active users.
• Kate Rooney notes OpenAI is becoming a real competitor to Google and Meta for digital ad dollars.
• OpenAI cut off model access for a startup tied to Elon Musk, intensifying the Altman-Musk feud.
• The dispute highlights debate over AI providers acting as neutral infrastructure while competing with apps built on top of them.