Sam Altman's “Last Resort” Just Became a $1 Billion Business. What It Means for OpenAI's IPO.

OpenAI's ChatGPT Ads reached a $1 billion annualized revenue run rate in under 200 days, marking a significant milestone for the advertising business that CEO Sam Altman previously called a 'last resort.' However, the ad business represents only 3.7% of OpenAI's total revenue, which grew 18% to $6.7 billion in Q2 while operating losses widened. As OpenAI prepares for a potential $1 trillion IPO, investors face concerns about massive capital requirements, regulatory challenges in Europe, and risks that ads could erode user trust and growth.