OpenAI has begun charging advertisers on a cost-per-click basis inside ChatGPT, marking its first direct move into the digital advertising market and putting it in competition with Google and Meta.
Summary
- OpenAI is charging advertisers per click inside ChatGPT, its first formal entry into digital advertising.
- The move puts OpenAI in direct competition with Google and Meta for digital ad spending.
- The development signals a major shift in how AI platforms may be monetized beyond subscriptions.
OpenAI has quietly launched a pay-per-click advertising model inside ChatGPT, according to Digiday, which first confirmed the details originally reported by The Information. The model charges brands directly for clicks generated within the AI interface, a structure that mirrors the core revenue engine powering both Google Search and Meta’s platforms.
OpenAI Advertising Model Enters the Chat
ChatGPT’s ad pilot launched in February 2026 on a cost-per-thousand-impressions model, which lowered the barrier to onboarding brand advertisers but limited appeal for performance-focused buyers who prefer to pay for clicks rather than views. The switch to CPC changes that dynamic entirely. Digiday reported that the CPM rate at launch had already eroded from $60 to around $25 within ten weeks, adding financial pressure to accelerate toward a pricing model that ties revenue directly to user engagement. “As OpenAI looks to increase spending, this is going to help advertisers directly compare their results on OpenAI to other major advertising platforms and manage their spend,” Nicole Greene, VP analyst at Gartner, told Digiday.
A $2.5 Billion Ad Business Taking Shape
OpenAI has told investors it is targeting $2.5 billion in advertising revenue for 2026 and $11 billion by 2027, according to The Information. The company is projecting losses of approximately $14 billion in 2026, making advertising one of the fastest available paths to closing the gap between revenue and operating costs without raising subscription prices or launching another funding round. The pilot has already crossed $100 million in annualized revenue with several hundred advertisers participating, a pace that suggests the CPC move is intended to accelerate adoption rather than test demand.
What the CPC Model Means for Google and Meta
Google and Meta together control the majority of global digital ad spend, and both have built their dominance on performance-based pricing models where advertisers pay for measurable outcomes. ChatGPT’s entry into CPC pricing puts OpenAI on the same competitive ground for the first time. The key question for advertisers is where a ChatGPT click sits on the intent spectrum compared to a Google Search click, which commands premium rates because users are actively looking for something specific. Ad agency Adthena noted that Meta’s average CPC runs three to five times below Google Search rates, a gap driven by user mindset rather than inventory quality. Where OpenAI lands in that range will determine how aggressively brands redirect budgets away from established platforms and toward ChatGPT, which now serves over 500 million weekly active users.
OpenAI has stated that ads will not influence ChatGPT’s answers and that conversations will not be shared with advertisers, though the company has not yet detailed its full disclosure standards for sponsored content within the platform.
