OpenAI said on Thursday that it will begin showing advertisements on ChatGPT’s free and Go subscription tiers in India, marking the company’s latest step to diversify revenue ahead of a potential IPO. The rollout, which starts with 50 brands, follows a change to OpenAI’s terms of service earlier this month that permitted ads on the AI assistant.
The company has partnered with agencies WPP and Omnicom to manage the initial ad inventory. OpenAI also plans to launch an ad manager next month, allowing marketers to create campaigns with a daily minimum budget of ₹725 (about $7.60).
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Why India is central to OpenAI’s ad strategy
India represents a critical market for OpenAI. The company said in February that it has more than 100 million weekly active ChatGPT users in the country, a large portion of whom use the free tier or the lower-priced Go plan. That scale makes India a testing ground for advertising that could eventually be rolled out more broadly.
OpenAI has invested heavily in building its Indian user base. It launched the ChatGPT Go plan in August 2025 at a price below $5 per month, and even ran a promotional period that made the tier free for a full year. The company also advertised during major cricket tournaments, including the Women’s Premier League (WPL) and the Indian Premier League (IPL). More recently, it hired Uber’s India head to lead its expansion efforts in the country.
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“With ChatGPT Ads, businesses of every size can introduce themselves at relevant, high-context moments when decisions are beginning to take shape,” Dave Dugan, head of global ads solutions at OpenAI, said in a statement.
What the ad rollout means for OpenAI’s business
The move comes as OpenAI works to solidify its revenue streams. According to The Wall Street Journal, the company recorded revenue of $6.7 billion in the second quarter ended June 2026, up from $5.7 billion in the previous quarter. Advertising is expected to become a significant contributor to that growth.
OpenAI began showing ads to US users in February and expanded the program to Europe earlier this month. The India rollout follows the same playbook, targeting a market where the company already has deep penetration.
The company’s long-term ambitions are even larger. In November 2025, The Information reported that OpenAI aimed to reach 220 million paying users by 2030. At that time, 35 million users were paying for its Plus and Pro plans. The Go tier, with its lower price point, is designed to convert more of the free user base into paying customers, even if the revenue per user is smaller.
For marketers, the appeal of ChatGPT Ads lies in the platform’s context. Ads appear at moments when users are actively seeking information, which could make them more effective than traditional display ads. However, the program is still in its early stages, and it remains unclear how users will respond to advertising within an AI assistant.
OpenAI’s ad push also raises questions about user experience. The company has built ChatGPT as a premium, ad-free product for paying subscribers. Introducing ads on the free and Go tiers could test user tolerance, especially in a market like India where price sensitivity is high.
As OpenAI prepares for a potential IPO, expected this year or next, the company is under pressure to demonstrate sustainable revenue growth. Advertising is a proven model for tech companies, but it also brings new challenges, including advertiser trust, ad quality, and user privacy. The India rollout will provide early signals on whether ChatGPT Ads can work at scale.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. The cryptocurrency and AI markets are volatile and uncertain; readers should conduct their own research before making any investment decisions.
