Amazon announced a partnership with OpenAI on Thursday. This allows advertisers on Amazon's platform to run ads inside ChatGPT. The program starts with a select group of brands in the United States.
This partnership shows confidence from Amazon, the world's largest online retailer. It supports OpenAI's fast-growing advertising business. OpenAI's ad business recently reached a $1 billion annual revenue run rate.
OpenAI began selling paid ad space in ChatGPT in February. The initial trial included retailers like Best Buy and Williams-Sonoma. This was reported by CNBC and seen by العربية Business.
Amazon Moves from Restricting AI to Advertising on ChatGPT
Amazon has strict rules for AI platforms like ChatGPT. These platforms, including Anthropic's Claude and Google's Gemini, cannot access Amazon's online store. Yet, Amazon is investing in its own AI shopping tools.
Quietly, over recent months, Amazon started buying ad space on ChatGPT. Amazon became the largest retail advertiser on the platform. This happened between April and August, according to market research firm Sensor Tower.
By letting brands advertise on Amazon also show ads within ChatGPT, Amazon acknowledges the platform's importance. It's a key marketing channel to reach consumers. Andy Jassy leads Amazon.
In February, OpenAI announced ChatGPT reached 900 million weekly active users.
Amazon: Conversational Ads Offer Fastest Growth
Amazon stated in a blog post that conversational ads are the fastest-growing engagement opportunity. Ads within AI chatbots help brands reach new and existing customers.
Chris Conroyta, multichannel supply director at Amazon's demand-side ad platform, commented. He said offering ChatGPT ads lets advertisers expand campaigns. They can reach customers on conversational platforms where they spend increasing time.
Under the deal, Amazon will set up and manage ad campaigns. OpenAI's ad system will control all ad distribution and display decisions. An Amazon spokesperson explained this.
Ad units in ChatGPT will appear as text or images. They will show below the chatbot's responses.
This partnership signals ChatGPT's shift. It's moving from a search and chat tool to a new marketing platform. Tech companies are competing to profit from the huge growth in generative AI.