Key Takeaways
- Early-stage discussions between OpenAI and The Trade Desk (TTD) focused on ChatGPT advertising sales
- After-hours trading saw TTD climb 9.3%, while AppLovin (APP) increased more than 1%
- ChatGPT ads are currently being tested with logged-in adult users on Free and Go plans
- OpenAI’s annualized revenue reached $25B by late February, marking a 17% increase from $21.4B at year-end
- A massive $110B funding round saw contributions from Amazon, Nvidia, and SoftBank
Shares of The Trade Desk (TTD) climbed 9.3% during after-hours trading Wednesday following a report from The Information indicating that OpenAI has engaged in preliminary conversations with the advertising technology company about monetizing ChatGPT through advertisements.
According to sources familiar with the situation cited in the report, these discussions remain in the preliminary stages.
OpenAI has recently launched an advertising experiment within ChatGPT for U.S. users. This pilot program targets adult users who are logged into either the Free or Go subscription plans.
Rather than building its advertising infrastructure entirely internally, the artificial intelligence company seems to be pursuing a partnership-driven approach.
In addition to The Trade Desk, OpenAI has reportedly engaged with various brands, media agencies, and additional advertising technology companies as it rolls out its initial advertising pilot program.
Shares of competing ad tech company AppLovin (APP) also saw modest gains, rising over 1% on the news.
OpenAI’s Revenue Growth Trajectory
According to a recent report, OpenAI’s annualized revenue reached $25 billion by the conclusion of February. This represents a 17% jump from the $21.4 billion figure reported at the close of last year.
The company has set ambitious targets, projecting total revenue exceeding $280 billion by 2030, with roughly balanced contributions from consumer-facing and enterprise segments.
On the enterprise front, OpenAI contends with rivals including Anthropic and Google, both of which are aggressively marketing AI solutions to business clients.
Massive Capital Infusion of $110B
OpenAI announced last Friday that it had successfully closed a $110 billion funding round.
Amazon led with a $50 billion investment, while Nvidia and SoftBank each contributed $30 billion.
This funding round ranks among the largest in technology sector history, providing OpenAI with substantial capital to expand its business operations — including its advertising ventures.
Integrating advertisements into ChatGPT represents part of OpenAI’s strategic effort to create multiple revenue streams, complementing its existing subscription models and enterprise agreements.
The Trade Desk’s programmatic advertising platform, which operates on a self-service model, could provide OpenAI with the necessary scale and technical infrastructure to efficiently manage ad delivery across its expanding user base.
Neither organization has publicly confirmed any finalized partnership agreement.
