OpenAI announced on Monday that its advertising business has reached an annualized revenue run rate of $1 billion, marking a significant milestone for the company. The development underscores OpenAI’s efforts to diversify its revenue streams as it prepares for a highly anticipated initial public offering (IPO).

The artificial intelligence firm reported that its ad business, which has been operational for roughly 200 days, complements its existing revenue sources, including enterprise services, consumer subscriptions, and usage-based application programming interfaces (APIs). OpenAI first introduced advertisements within its ChatGPT chatbot in the United States in February, a move that generated both interest and debate within the tech community.

Digital advertising has historically been a major revenue driver for established technology giants such as Google and Meta. However, OpenAI’s venture into this space has drawn criticism from competitors, notably Anthropic, which highlighted OpenAI’s ad strategy in its inaugural Super Bowl advertising campaign.

Currently, ChatGPT’s ad feature is available in over 40 countries. On Monday, OpenAI expanded self-service ad access to users in India, Europe, the Middle East, and North Africa, signaling a broad international growth strategy.

As OpenAI approaches its much-anticipated IPO, the company faces pressure to substantiate its $852 billion valuation amid a competitive and evolving AI landscape. The achievement of a $1 billion revenue run rate from its ad business is being presented by OpenAI as evidence of a sustainable and diversified business model.