What happened
OpenAI will start showing ads on ChatGPT's Free and Go tiers in India, beginning with 50 brands. The company partnered with agencies WPP and Omnicom, and will launch an ad manager next month for campaigns with a daily minimum budget of ₹725 ($7.60).
Why it matters
This follows OpenAI's recent expansion of ads to U.S. users in February and Europe earlier this month. With over 100 million weekly active ChatGPT users in India, many on free or lower-priced tiers, ads could become a significant revenue source ahead of a potential IPO expected this year or next.
What to watch
OpenAI's ad manager launch next month will let marketers create campaigns, subject to the minimum budget. The company's revenue reached $6.7 billion in Q2 ended June 2026, up from $5.7 billion the previous quarter, and it aims for 220 million paying subscribers by 2030.
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OpenAI's entry into advertising in India is a strategic step to monetize its large user base. The company has invested heavily in India, including a sub-$5 ChatGPT Go plan and promotions during cricket leagues, and now aims to convert its free tier into a revenue stream. This move aligns with its broader revenue growth, as seen in its quarterly earnings rise, and comes as it prepares for a potential IPO. However, the long-term impact on user experience and retention remains to be seen, though the company seems focused on leveraging its user base to attract advertisers.
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