OpenAI’s fast-growing advertising business could begin taking share from Alphabet Inc.’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google, Meta Platforms Inc (NASDAQ:META) and ByteDance’s TikTok, with Google Search facing the greatest exposure, according to D.A. Davidson technology research head Gil Luria.
Luria, who rates Google Hold and Meta Buy, said OpenAI’s advertising business has reached a $1 billion annualized revenue run rate, up from about $100 million just six months ago.
OpenAI Could Build A Tens-Of-Billions Ad Business
Luria told CNBC that OpenAI’s current advertising revenue remains small compared with the broader market, but its roughly 1 billion users give it substantial room to expand.
He believes OpenAI could eventually build an advertising business worth tens of billions of dollars as it shifts its consumer monetization mix toward advertising and away from its heavy reliance on subscriptions.
