Amazon gives OpenAI's ad business a boost, letting its advertisers into ChatGPT

Insight summary

• •Amazon partners with OpenAI to allow its advertisers to run ads in ChatGPT, starting with select U.S. brands.
• •OpenAI's ad business in ChatGPT has reached a $1 billion annualized revenue run rate.
• •Amazon has restricted AI platform access to its store but has started buying ads on ChatGPT, becoming the top retail advertiser there from April to August.
• •ChatGPT reportedly has 900 million weekly active users as of February, making it a significant marketing channel.
• •Ads appear as text or images beneath ChatGPT responses and are clearly labeled as sponsored.
• •Amazon manages ad campaigns, while OpenAI controls ad delivery decisions.
• •The trial includes companies like Delta Vacations leveraging conversational ad formats for engagement.