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Chronicles

The story behind the story

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OpenAI continues to work to grow its ad business in ChatGPT, cutting ad rates, chasing small and midsize businesses, and hiring some new talent from Meta

The Information Alix Coutures

Context & Ripple Effects

OpenAI’s ad strategy has moved from a cautious consideration of advertising in 2024 to US tests below ChatGPT replies for free and Go users in January 2026. By March, it reported more than $100 million in annualized ad revenue and 600-plus advertisers, alongside plans for self-serve access as the advertiser base expanded.

Lower rates and a small-business focus turn that early enterprise-oriented sales effort into a broader advertiser-acquisition push, while Meta hires add established ad-market expertise to the team.

First-order effects

  • Small and midsize businesses gain a lower-cost route into ChatGPT advertising, expanding OpenAI’s potential advertiser pool beyond the select buyers initially asked for large commitments.
  • OpenAI’s ad organization gains personnel with Meta advertising experience as it builds sales and advertiser-support capacity.

Second-order effects

  • Meta faces more direct competition for small-business ad budgets and experienced advertising staff as OpenAI combines lower pricing with targeted hiring.
  • A larger base of smaller advertisers increases the importance of OpenAI’s planned self-serve access, because sales-led onboarding is less suited to a broad SMB market.

Third-order effects

  • If lower pricing and self-serve tools sustain advertiser uptake, ChatGPT advertising shifts from an experimental revenue line toward a distribution business built around serving many smaller buyers.
  • The contest between OpenAI and Meta increasingly spans ad-sales infrastructure and advertiser relationships, not only consumer AI products.

The trend: Generative-AI providers are commercializing consumer distribution through ad platforms that seek the scale and self-service economics of established digital advertising.

Discussion

  • @eric_seufert Eric Seufert on x
    Putting aside this regressive, parochial perspective on ads — which, in the case of ChatGPT, subsidize free access to frontier LLMs — custom audiences for ChatGPT ads are not new.  OpenAI introduced custom audiences in July.  And OpenAI is far from the only ad platform to allow c…
  • @theinformation @theinformation on x
    OpenAI's advertising team has been restructured seven times, and roughly 37% of its 140 employees have previously worked at Meta. “They brought on Dave Dugan, who had been at Meta for about 12 years, and he basically reorganized the whole team.
  • @milkroadstocks @milkroadstocks on x
    OpenAI is coming for Meta. OpenAI is hiring away Meta $META ad staff and cutting its ad prices to win over advertisers, according to The Information - with the lower rates having pulled in a large swath of new advertisers. OpenAI now has roughly 140 employees working on ads, and …
  • @drsurekhadavies @drsurekhadavies on bluesky
    Instead of paying for ChatGPT, buy books and get a reader's card for your local public and/or university libraries.  Ask real people things.  —  Otherwise you can add malware and adverts to the forms of personal brain-rot, nonsense, and sabotage you'll face.