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

Amazon on Thursday announced it's partnering with OpenAI to let its advertisers run ads in ChatGPT, starting with select brands in the U.S.

It marks a vote of confidence from the world's largest online retailer in OpenAI's burgeoning ad business, which recently reached a $1 billion annualized revenue run rate. OpenAI started selling sponsored placements in ChatGPT in the U.S. in February, starting with retailers like Best Buy and Williams-Sonoma.

Amazon has heavily restricted access to its sprawling webstore from artificial intelligence platforms like ChatGPT, Anthropic's Claude and Google's Gemini, while investing in its own AI shopping tools. But in recent months, Amazon began quietly buying ads on ChatGPT, and it became the top retail company advertising on the platform between April and August, according to data from market intelligence firm Sensor Tower.

By letting brands that advertise on Amazon run ads in ChatGPT, the Andy Jassy-led giant is acknowledging that the platform has become an important marketing channel. OpenAI said in February that ChatGPT reached 900 million weekly active users.

Amazon said in a blog post that conversational ad formats like those that appear in AI chatbots are the "fastest growing engagement opportunity" for brands to reach new and existing customers.