ChatGPT Ads: Magnite and PubMatic Deals Support Filling Unsold Inventory
Key Facts
OpenAI has signed agreements with Magnite and PubMatic to help fill unused advertising inventory on ChatGPT, according to an exclusive report by The Information, which cited three people familiar with the deals. The companies provide software that enables advertisers to buy ads across websites and digital platforms, while the agreements add a channel for buying ads within ChatGPT. Advertisers use Magnite and PubMatic tools to set budgets, submit bids and upload advertising creative. OpenAI’s system, however, controls ad delivery to users. An OpenAI spokesperson said the tools make it easier to buy and manage ChatGPT ads through platforms advertisers already use.
The partnerships had not been announced when the report was published, and the volume of ads flowing through the companies remained small. Still, the ad-tech companies expected that volume to grow quickly, according to The Information. The agreements are part of a broader network of ad-buying channels OpenAI is building. Previous deals included Criteo, LiveRamp and StackAdapt, as well as Amazon Ads in September, the report said. OpenAI has also announced other technology partners, including Adobe, Criteo, Kargo, Pacvue and StackAdapt, while its system continues to determine ad delivery.
The expansion of buying channels comes as OpenAI seeks to grow an advertising business it said had reached a $1 billion annualized revenue run rate on August 31, 2026. The company said at the time that its 2026 advertising revenue target was $2.5 billion. Reuters cited an analyst who said the reported annualized run rate indicated the company remained a long way from that target. On the same day, OpenAI said ads were available in more than 40 countries and its ecosystem had expanded to more than 50 technology and measurement partners. It also said small and medium-sized businesses had become a “meaningful” share of advertising activity, and that advertisers outside the United States were contributing a growing share of revenue.
Advertising testing began in the United States on February 9, 2026, according to OpenAI’s help page, which said ads were being gradually introduced to eligible users on the Free and Go plans in select regions. On August 31, the company announced that self-serve buying through Ads Manager was expanding to advertisers in India, Europe, the Middle East and North Africa. It said advertisers outside the United States accounted for a growing share of revenue. During the initial test, advertisers receive aggregated reports that include views and clicks, according to the help page. OpenAI added that advertisers do not receive users’ conversations or chat history, memories, names, email addresses, precise locations, internet addresses or sensitive information.
The ad system operates in parallel with answer generation, according to OpenAI, which said the services are separate and do not share a content-generation model, and that an ad-system outage does not disrupt organic answers. For campaign tools, the company said optimized click and results bidding now account for the majority of campaigns. Targeting tools include product feeds, geographic targeting and custom audiences. OpenAI has lowered ad prices and launched formats that let users start a conversation with a brand by clicking an ad, according to The Information. The company says its next phase will include additional markets, formats, objectives, buying options and measurement capabilities.
In the market, Magnite shares closed at $21.49 on October 30, 2026, compared with a close of $22.43 in the previous session, according to EL7 data. PubMatic shares closed at $15.89 the same day, compared with $17.01 on October 29. The data provided do not include intraday trading levels. PubMatic’s results provide context on its business: revenue was $78.6 million in the second quarter of 2026, up 11% from the same period a year earlier. The company said emerging revenue, which includes new artificial intelligence solutions, grew about 100% year over year and represented about 15% of total revenue in the quarter.
PubMatic is scheduled to report results for the third quarter, ended September 30, 2026, after the market closes on November 9, 2026. The upcoming results will update investors on the company’s performance after second-quarter revenue growth, as OpenAI expands its ad-buying options and partner network. OpenAI said its plan for the next phase includes reaching more markets and adding new formats and objectives. It also includes additional buying and measurement options. The agreements with Magnite and PubMatic remain, according to the report, a small-volume channel within that expansion for now.