OpenAI's Ad Business Hits $1 billion Annualized Revenue Run Rate

FILE - The OpenAI logo is displayed on a mobile phone in front of a computer screen with output from ChatGPT, March 21, 2023, in Boston. (AP Photo/Michael Dwyer, File) 
FILE - The OpenAI logo is displayed on a mobile phone in front of a computer screen with output from ChatGPT, March 21, 2023, in Boston. (AP Photo/Michael Dwyer, File) 
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OpenAI's Ad Business Hits $1 billion Annualized Revenue Run Rate

FILE - The OpenAI logo is displayed on a mobile phone in front of a computer screen with output from ChatGPT, March 21, 2023, in Boston. (AP Photo/Michael Dwyer, File) 
FILE - The OpenAI logo is displayed on a mobile phone in front of a computer screen with output from ChatGPT, March 21, 2023, in Boston. (AP Photo/Michael Dwyer, File) 

OpenAI on Monday said ChatGPT Ads, the company's advertising business, has reached $1 billion in annualized revenue run rate, as adoption picks up and global expansion rolls out.

The company started testing ads in ChatGPT US earlier this year and has steadily expanded to add advertisers and tap into more markets, as it banks on advertising to boost overall revenue growth ahead of a potential IPO.

Starting on Monday, advertisers across India, Europe, the Middle East and North Africa can purchase ChatGPT ads directly via OpenAI's Ads Manager — a tool it has already rolled out in the United States. Ads Manager has been helpful in drawing small- and medium-sized businesses (SMBs) to advertise on ChatGPT, the company said, adding that SMBs now represent a "material share" of its ads business, according to Reuters.

OpenAI said advertisers outside the US represent a growing share of revenue, without disclosing further details.

OpenAI has been displaying ads to users on ChatGPT's free tier and the lower-priced Go plan. In April, OpenAI had said its ads pilot in the US crossed $100 million in annualized revenue within six weeks of its launch.

For OpenAI, competing in the advertising industry means challenging the dominance of Alphabet's Google and Facebook parent Meta, both of which rake in hundreds of billions in ad revenue annually.

OpenAI confidentially filed for a US initial public offering earlier this year, with the company reportedly expected to go public in 2027 or sooner.

 

 



Nvidia Invests $3.5 billion in MediaTek Convertible Bonds

Nvidia's logo at its headquarters in Santa Clara, California (AFP)
Nvidia's logo at its headquarters in Santa Clara, California (AFP)
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Nvidia Invests $3.5 billion in MediaTek Convertible Bonds

Nvidia's logo at its headquarters in Santa Clara, California (AFP)
Nvidia's logo at its headquarters in Santa Clara, California (AFP)

Nvidia said on Monday it has invested $3.5 billion in convertible bonds issued by Taiwan's MediaTek, which could add to growing investor concerns about circular financing in the AI sector.

The new deal is the latest example of Nvidia helping finance businesses building products and infrastructure around its technology, a strategy that supports growth in its AI ecosystem but has drawn investor scrutiny, Reuters reported.

The deal includes MediaTek adopting Nvidia's NVLink Fusion platform, allowing customers to develop custom AI chips that can connect to Nvidia-powered AI systems and data centers.

The companies will also extend collaboration on AI chips for personal computers and continue developing platforms for AI-powered vehicles.

In June, Nvidia unviled the RTX Spark PC chip to "reinvent the PC" for the AI era, which was developed in partnership with MediaTek.


ChatGPT Becomes First AI Chatbot to Face Tougher EU Rules

In this photo illustration, the ChatGPT logo is displayed on a smartphone on May 20, 2026 in Los Angeles, California. (Getty Images/AFP)
In this photo illustration, the ChatGPT logo is displayed on a smartphone on May 20, 2026 in Los Angeles, California. (Getty Images/AFP)
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ChatGPT Becomes First AI Chatbot to Face Tougher EU Rules

In this photo illustration, the ChatGPT logo is displayed on a smartphone on May 20, 2026 in Los Angeles, California. (Getty Images/AFP)
In this photo illustration, the ChatGPT logo is displayed on a smartphone on May 20, 2026 in Los Angeles, California. (Getty Images/AFP)

ChatGPT will have to comply with tougher safety rules after the EU added it Monday to a list of digital services subject to greater legal scrutiny, a first for an AI chatbot.

Brussels also designated Reddit and Roblox as "very large" online platforms, a label that comes with additional obligations and oversight.

"ChatGPT, Reddit and Roblox will now be held to a higher standard of scrutiny and accountability in the European Union, in line with their large impact on our citizens and society," EU technology chief Henna Virkkunen said.

The "very large" designation applies to platforms and search engines with more than 45 million monthly active users in the 27-nation bloc, a threshold ChatGPT, Reddit and Roblox reported meeting, the commission said.

The three now have four months to comply with additional obligations under the Digital Services Act (DSA), a content law that is a major weapon in the legal armory the EU has deployed to rein in Big Tech in recent years.

These include "assessing and mitigating the systemic risks stemming from their service and algorithmic systems related to the dissemination of illegal content, the negative effects on minors, users' physical and mental well-being, fundamental rights, electoral processes and public security," Brussels said.

To bring it under the DSA's regulatory umbrella, the commission qualified ChatGPT as a search engine.

Lena-Maria Boswald, of the German tech think tank Interface, said ahead of the announcement that the expected move would set a "precedent" and "influence the regulatory expectations for every large generative AI system used in the EU".

"OpenAI already has risk-management obligations under the AI Act, but the DSA could widen the scope," she said.

The widened scrutiny will also apply to Roblox, a gaming platform that lets people build their own games and share them with others, and Reddit, the popular online forum.

The designations come as the EU has stepped up regulatory enforcement against the world's biggest digital platforms, including many American ones, despite strong US pushback and threats of retaliation.

It recently told TikTok, one of the about 30 other listed platforms, to change what it deemed its addictive design or face heavy fines.

And last year it hit Elon Musk's social media platform X with a 120-million-euro ($138 million) fine for breaching transparency obligations and other violations.


John Ternus to Lead Apple into the Age of AI

View of an Apple logo at an Apple store in Paris, France, April 23, 2025. (Reuters)
View of an Apple logo at an Apple store in Paris, France, April 23, 2025. (Reuters)
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John Ternus to Lead Apple into the Age of AI

View of an Apple logo at an Apple store in Paris, France, April 23, 2025. (Reuters)
View of an Apple logo at an Apple store in Paris, France, April 23, 2025. (Reuters)

John Ternus takes over as Apple's chief executive on Tuesday, inheriting a company that towers over the smartphone market but trails its rivals in artificial intelligence.

One of his biggest challenges will be balancing the company's dependence on China while parrying acute political pressure from the White House.

The handover ends Tim Cook's 15-year run, replacing the operations specialist who built Apple's supply chain with the engineer who built its hardware.

Ternus, 51, joined Apple's design team in 2001 and worked his way up to senior vice president of hardware engineering, reporting to Cook.

He leads the engineering teams behind Apple's entire product lineup, including the iPhones that generate most of the company's revenue.

He gets barely a week to settle in, with Apple holding its annual iPhone event on September 9, where it is expected to unveil its first foldable handset.

"Tim Cook left the house in phenomenal order," said Dan Ives, partner and senior managing director at investment firm Yorkville Ives & Co.

"But now it's about Ternus defining the AI chapter."

Ives expects the new chief executive to lean into what he knows.

"There's no reason to fix what's already working," he said, predicting Ternus will concentrate on hardware innovation while leaving Cook's supply chain intact.

Some analysts had argued software chief Craig Federighi was the more logical pick for a company scrambling to catch up on AI.

Carolina Milanesi, an analyst at Creative Strategies, said that misreads how consumers actually adopt technology.

"Consumers are still buying hardware first, and it's going to be like that for a long time," she said. "You're not going to discover the value of AI if you're not interested in the hardware."

Ternus earned a bachelor's degree in mechanical engineering from the University of Pennsylvania and worked as an engineer at Virtual Research Systems before joining Apple.

Inside the company he is credited with driving a push to make products more durable, reliable and resilient, and with design work that cut their carbon footprint.

The harder question is what kind of leader he becomes.

"Even people that know him now don't know him as a CEO," Milanesi said.

"You might know him as the head of engineering, but once you're CEO, things change. Your responsibility is bigger, your power is bigger. You're dancing a different kind of dance."

- 'Learn on the job' -

Nowhere is that gap wider than in the geopolitical role Cook excelled at, courting both Beijing and Donald Trump's White House to protect a supply chain that runs largely through China.

Apple's manufacturing operation is among the most complex in corporate history, a web of hundreds of suppliers and assembly lines that Cook painstakingly built over decades.

Cook in recent years began shifting some of the work elsewhere -- iPhone assembly to India, other production to Vietnam -- but the diversification has been gradual with China, one of Apple's biggest consumer markets, still anchoring the system.

Complicating matters, Trump has repeatedly demanded Apple build iPhones on American soil, threatening tariffs on those made overseas.

Cook avoided the heaviest blows of Trump's trade war by cultivating the president directly, making US investment commitments and political donations -- all while also keeping Beijing onside.

The tricky political terrain will be new for Ternus.

"He knows Apple Park like the back of his pocket in terms of hardware," Ives said of Ternus. "But on the global stage -- that's probably one of the biggest areas where he's going to have to learn on the job."

Cook is not going far. He becomes executive chairman of Apple's board on the same day, with a mandate the company has said includes engaging policymakers around the world.

"That was really clever," said Milanesi, arguing the arrangement frees Ternus from a role Cook has handled alone for years.

The September 9 iPhone event will be the first public measure of the handover.

A foldable iPhone would be the most significant redesign in years, and Ternus will be its face -- eight days into the job.

"This is a moment that they created for him," Milanesi said.