OpenAI Ad Business Surges 10x in 6 Months, Posing Threat to Google Search
A top Wall Street analyst is warning investors about the rapid growth of OpenAI's advertising business, which has reached a $1 billion annualized revenue run rate in just six months.
This is up from $100 million at the same time last year, and the analyst believes that OpenAI's ad business will likely take market share away from Alphabet's (NASDAQ:GOOGL | GOOGL Price Prediction) dominant Google Search advertising business.
According to D.A. Davidson analyst Gil Luria, OpenAI's ad business is still small compared to Google Search, but the growth trajectory should be a concern for Alphabet investors.
Luria estimates that Google Search will generate around $250 billion in revenue this year, and notes that OpenAI's ad business will likely start taking 'little bits of share' from Google Search.