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OpenAI Says ChatGPT Ad Business Reaches $1bn Annualized Revenue Run Rate As IPO Plans Take Shape

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OpenAI said Monday that advertising on ChatGPT has reached a $1 billion annualized revenue run rate less than 200 days after launch, giving the artificial intelligence company a rapidly expanding source of income as it prepares investors for a potential initial public offering.

The milestone highlights the speed at which OpenAI is attempting to diversify its business beyond subscriptions, enterprise contracts and usage-based API revenue. The company said advertising now represents a “material share of the business,” although it did not disclose the actual revenue generated by the ad operation over the period.

“Advertising is one pillar of OpenAI’s diversified business model, alongside consumer subscriptions, enterprise offerings, and usage-based APIs,” the company said.

An annualized revenue run rate is based on current or recent revenue levels projected over a full year. It does not mean OpenAI has already generated $1 billion in advertising revenue since launching the service.

The rapid expansion of advertising could become an important part of OpenAI’s investment story as it prepares for a possible IPO. The company is facing enormous computing and infrastructure costs as it expands its AI models and services, making the development of multiple high-margin revenue streams increasingly important to its long-term financial model.

OpenAI’s move into advertising was once viewed as unlikely. Chief Executive Sam Altman had previously expressed reservations about introducing ads into AI products, arguing that the model could create incentives that undermine the user experience.

“Ads plus AI is sort of uniquely unsettling to me,” Altman said at an event at Harvard University in May 2024. “I kind of think of ads as a last resort for us for a business model.”

The company has since moved ahead with advertising as it seeks to turn ChatGPT’s enormous consumer audience into a larger commercial opportunity.

The expansion puts OpenAI in competition with an established digital advertising industry dominated by companies such as Alphabet and Meta Platforms. ChatGPT, however, gives OpenAI access to a different type of consumer interaction, with users directly communicating their needs, interests, and intentions to an AI system.

That creates significant potential value for advertisers, but it also raises questions about how commercial messages can be integrated without undermining user trust.

Anthropic, OpenAI’s rival, has repeatedly attacked the advertising model. Its Super Bowl campaign mocked OpenAI’s decision by depicting an AI assistant turning user conversations into opportunities to deliver emotionally targeted advertisements.

Altman described the campaign as “funny” but “clearly dishonest.”

The controversy illustrates the central challenge OpenAI faces as it commercializes ChatGPT: advertising could provide a substantial new revenue stream, but poorly designed ads could weaken the trust that has helped make the chatbot one of the world’s most widely used AI products.

OpenAI said ChatGPT advertising is now available in more than 40 countries. On Monday, it is also launching a self-service advertising platform across India, Europe, the Middle East and North Africa, allowing businesses to participate in the system without relying entirely on direct sales arrangements.

The company said its next phase will include more markets, advertising formats, campaign objectives, purchasing options and measurement tools. It also plans to explore ways for businesses to interact with consumers more directly within ChatGPT.

IPO Puts Pressure on Growth And Monetization

The advertising milestone comes as OpenAI weighs a public listing that could take place as early as this year, although the company has indicated that an IPO is not imminent.

The company is under increasing pressure to demonstrate that its extraordinary user growth can translate into sustainable revenue and eventually profits. AI development requires substantial spending on computing infrastructure, chips, data centers and model training, making revenue diversification a central part of the business case for investors.

OpenAI has also been narrowing its product focus. In recent months, the company has shut down or scaled back ventures including Sora, its short-lived short-video-style AI application, as it concentrates resources on its core AI business. At the same time, OpenAI has experienced senior executive departures, including Chief Operating Officer Brad Lightcap, adding another layer of scrutiny as the company moves toward its next stage of growth.

The $1 billion advertising run rate therefore represents more than a milestone for a new business line. It provides OpenAI with evidence that ChatGPT can generate commercial value from its massive consumer audience without relying exclusively on subscription payments.

However, analysts consider OpenAI’s ability to expand advertising while preserving user trust and maintaining strong growth across its other businesses as the bigger test. If it succeeds, some believe that advertising could become a significant financial pillar alongside subscriptions, enterprise software and APIs, strengthening the company’s revenue profile ahead of a potential public-market debut.

Why Croatia Is Made for a Sailing Holiday

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Croatia has become one of the most recognizable sailing destinations in the Mediterranean, and it is easy to understand why. The country combines historic coastal towns, hundreds of islands, sheltered bays, clear Adriatic water, and sailing routes that can be adapted to both relaxed holidays and more ambitious trips.

Unlike destinations where long passages separate the main points of interest, many Croatian sailing areas allow travelers to visit a new island, town, or anchorage every day without spending the entire trip underway.

For anyone who wants to combine sailing with swimming, food, history, and island hopping, Croatia offers an unusually complete experience.

Explore the Croatian Coast One Island at a Time

One of the biggest attractions of sailing in Croatia is the sheer variety of places that can be included in a single itinerary.

A week on the water might involve visiting a lively harbor town, anchoring beside a quiet island, swimming in a secluded bay, and spending the evening at a waterfront restaurant.

The central Dalmatian coast is particularly well suited to this style of travel. Popular starting points such as Split and Trogir provide access to islands including Bra?, Hvar, Šolta, and Vis.

Travelers looking for their own Croatia yacht charter can choose from sailing yachts, catamarans, motor yachts, and crewed options departing from bases along much of the Adriatic coast.

Start Your Journey From Split

Split is one of Croatia’s most popular gateways to the Adriatic islands.

The city combines a large sailing infrastructure with a historic center, restaurants, beaches, and convenient access to central Dalmatia.

From here, sailors can quickly reach several very different destinations.

Bra? is known for its beaches and traditional coastal towns, while Hvar combines historic architecture, restaurants, nightlife, and attractive bays. Vis, located farther offshore, offers a quieter atmosphere and a coastline filled with small anchorages and fishing villages.

This makes Split particularly useful for travelers who want plenty of variety without constantly covering long distances.

Discover Hvar Beyond the Famous Town

Hvar is one of the best-known islands in Croatia, but arriving by yacht reveals much more than the famous harbor.

The island has numerous bays and small coastal settlements where sailors can stop for swimming or spend the night away from the busiest parts of town.

Nearby, the Pakleni Islands create another natural playground for yachts. Their small bays and surrounding waters make them popular for swimming, relaxing, and short sailing trips from Hvar.

This ability to combine an energetic town with quieter anchorages nearby is typical of sailing in Croatia.

Experience the Wild Side of the Kornati Islands

Farther north, the Kornati archipelago offers a very different landscape.

Instead of busy resort towns, sailors encounter rugged islands, rocky shores, clear water, and numerous natural anchorages.

The area is particularly attractive to travelers who want their sailing holiday to focus more on nature and time on the water.

Routes through the Kornati region often begin near Zadar, Sukošan, or Biograd, allowing sailors to combine the islands with other destinations along the northern Dalmatian coast.

The scenery here feels dramatically different from places such as Hvar or Dubrovnik, which is another reason Croatia works so well for repeat sailing trips.

Visit Historic Towns Directly From the Water

Sailing in Croatia is not only about beaches and islands.

The Adriatic coast is filled with historic towns where yachts can stop for an afternoon or overnight stay.

Split, Trogir, Šibenik, Kor?ula, and Dubrovnik all allow travelers to combine time at sea with architecture, local food, and centuries of history.

Arriving from the water adds another dimension to the experience.

Instead of checking into a hotel and using the same location as a base every day, the yacht becomes a floating home that moves with you along the coast.

One evening might be spent in a quiet anchorage, while the next could involve dinner inside an old town only a few minutes’ walk from the marina.

Croatia Works Well for Island Hopping

Island hopping is where the Croatian coast really stands out.

Many popular sailing areas contain several interesting destinations within relatively compact regions. That means a route can include regular stops without requiring extremely long passages every day.

For first-time sailing travelers, this can make the experience feel more like a road trip on the water.

You are constantly moving, but the journey between destinations is part of the holiday rather than simply a way to get from one attraction to another.

There is also plenty of flexibility. A route can focus on busy destinations and restaurants, quiet anchorages and swimming, or a combination of both.

Sailing Experience Is Not Essential

Travelers sometimes assume that renting a yacht requires years of sailing experience.

That is not necessarily the case.

Qualified sailors can charter a bareboat and manage the yacht themselves, while those without the required experience can book a yacht with a professional skipper.

There are also fully crewed options for travelers who want more onboard service.

This opens sailing holidays to families, couples, and groups of friends who simply want to experience Croatia from the water without learning how to operate a yacht first.

Sailboat or Catamaran?

Both sailing yachts and catamarans are common choices for Croatian itineraries.

A monohull sailing yacht is usually the traditional option and can be a good fit for travelers who want sailing itself to be a major part of the experience.

Catamarans provide additional living space and a wide deck area, which makes them particularly attractive to larger groups and families. Their shallow draft can also be useful when exploring bays and coastal areas.

The best choice depends on the group size, route, budget, and preferred level of comfort rather than there being one ideal yacht for every Croatian sailing holiday.

When to Sail in Croatia

The main sailing season runs through the warmer part of the year, with July and August generally attracting the largest number of visitors.

However, the peak of summer is not the only time worth considering.

Late spring and early autumn can be attractive alternatives for travelers who prefer a quieter atmosphere. June and September in particular are popular choices for combining warm Mediterranean conditions with fewer peak-season crowds.

The best period ultimately depends on whether the priority is hot summer weather, nightlife, quieter marinas, or sailing conditions.

A Different Way to Experience Croatia

Croatia can easily be explored by car, ferry, or traditional beach holiday, but sailing connects its coastline in a way that land-based travel cannot.

Instead of choosing between Hvar, Bra?, Vis, the Kornati Islands, or one of the country’s historic coastal towns, a yacht makes it possible to combine several of them within the same journey.

You can swim before breakfast, sail to another island during the day, walk through an old town in the evening, and wake up somewhere completely different the following morning.

That freedom is what makes Croatia such a natural destination for a sailing holiday — and why many travelers who discover the Adriatic from the water eventually return to explore another part of the coast.

Huawei Profit Plunges 36% As AI, Chip Investment And Rising Costs Squeeze Margins

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Most parts of the world have been pushing to cage Huwaei

Huawei Technologies reported a 36% decline in first-half net profit on Monday, as sharply higher production costs and a major increase in research and development spending outweighed stronger revenue, highlighting the growing financial burden of the Chinese technology giant’s push to build a self-reliant AI and semiconductor ecosystem.

The Shenzhen-based company said net profit for the six months ended June fell to 23.81 billion yuan ($3.54 billion), compared with a 32% decline in the same period last year. Revenue, however, rose 9.6% to 467.82 billion yuan as Huawei continued to rebuild its businesses after years of U.S. sanctions and export restrictions.

The results show that Huawei is generating substantial top-line growth while sacrificing a larger portion of its revenue to technology development and production. Its costs are rising faster than sales, putting pressure on margins at a time when the company is committing heavily to some of the most capital-intensive areas of the technology industry.

Research and development spending jumped 25.2% to 121.38 billion yuan in the first half, equivalent to 25.9% of revenue. The spending reflects Huawei’s efforts to advance artificial intelligence, communications technology, computing, smart devices and intelligent automotive systems.

The company’s cost of products increased 12.4%, outpacing its 9.6% revenue growth, while administrative expenses also climbed significantly.

Huawei said the first-half performance was in line with its internal expectations, but left its full-year outlook under review because of external uncertainties and rising input costs.

The pressure on profitability comes as Huawei attempts to turn the restrictions imposed by Washington into an incentive to develop domestic alternatives. U.S. export controls have limited the company’s access to advanced semiconductors and other technologies, while earlier sanctions contributed to a 29% decline in Huawei’s annual revenue in 2021.

Since then, Huawei has poured resources into developing its own chip, software and AI computing capabilities, while expanding into areas including electric vehicles, cloud computing and consumer electronics. The strategy has helped restore revenue. Huawei’s 2025 revenue increased 2.2% to 880.9 billion yuan, its second-highest annual level, behind the 891 billion yuan recorded in 2020.

The company has continued expanding its AI-related telecoms products and computing hardware this year, while developing smart-driving technology and launching new smartphones, tablets and wearable devices in China and overseas.

Huawei did not provide a breakdown of first-half revenue by business. It said, however, that all of its business divisions recorded year-on-year revenue growth.

The cost of that expansion is becoming increasingly visible in Huawei’s cash position and inventories. Cash used in day-to-day operations reached 39.88 billion yuan in the first half, compared with cash generation of 31.18 billion yuan a year earlier.

Spending on goods and services increased substantially faster than cash received from customers, while inventories jumped 42% from the end of 2025. The build-up could indicate that Huawei is preparing for stronger demand, but it also ties up cash and increases the financial risk of holding components and finished products in a volatile technology market.

Huawei attributed part of the profitability pressure to higher R&D spending and changes in its business mix.

Rising memory prices are also affecting its consumer electronics operations, particularly smartphones. That creates an additional challenge for Huawei because the company is simultaneously trying to expand its hardware presence and absorb higher component costs without passing the full increase on to customers.

The financial pressure illustrates a broader challenge facing Chinese technology companies operating under U.S. restrictions. Building domestic substitutes for advanced foreign technology requires sustained investment, but those investments can take years to generate returns and may initially depress profitability.

Huawei is seeking to strengthen its position across the computing stack, from chips and processors to networking equipment and software, at a time when China is pushing to reduce its dependence on U.S.-controlled technology. These make the stakes high.

While the strategy could give Huawei greater control over its supply chain over the longer term, the first-half figures show that technological self-reliance comes with substantial near-term costs.

The company is also facing continuing legal and geopolitical risks in the United States. Its filing disclosed a U.S. court date next week in a case involving allegations of bank fraud and sanctions violations. A separate case concerning alleged theft of T-Mobile trade secrets is scheduled for trial in October next year.

Huawei has denied wrongdoing in the various U.S. cases.

The combination of rising revenue and falling profit leaves Huawei at an important point in its post-sanctions recovery. The company is expanding across AI, chips, telecommunications, consumer devices and automotive technology, but translating that expansion into sustainable profit growth will depend on its ability to eventually offset higher investment and input costs by scale.

Strategy Buys 4,603 Bitcoin for $370 Million, Ending Two-Month Pause

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Strategy, the Bitcoin treasury company led by Michael Saylor, has resumed its accumulation strategy with a significant purchase of 4,603 Bitcoin.

The company acquired the coins between August 24 and August 30 for approximately $369.7 million, at an average price of $80,318 per bitcoin, according to an SEC filing and Saylor’s announcement on X.

This marks Strategy’s first bitcoin purchase since late June, ending a roughly two-month pause during which the firm focused on strengthening its balance sheet.

Recall that Strategy’s pause in Bitcoin purchases became significant in late June 2026, when the company temporarily halted its regular Bitcoin acquisitions amid growing pressure on its capital structure and preferred-stock obligations.

On June 22–28, 2026, Strategy reported that it had made no Bitcoin purchases. Instead, it increased its U.S. dollar reserve to about $2.55 billion and introduced a new framework designed to strengthen its liquidity position. The company required the reserve to cover at least 12 months of expected preferred-stock dividends and interest expenses.

The pause ultimately lasted about 10 weeks, making it one of Strategy’s longest breaks from Bitcoin accumulation. During this period, the company shifted its focus toward building cash reserves, managing its preferred securities and strengthening its balance sheet, rather than deploying all available capital into Bitcoin.

By late August, Strategy had accumulated about $6.69 billion in designated dollar liquidity, including a new $1.59 billion flexible cash pool that could eventually be used to purchase Bitcoin.

The recent acquisition brings Strategy’s total bitcoin holdings to 845,050 BTC, purchased at an aggregate cost of about $63.73 billion, or an average of $75,412 per coin. At recent market prices near $78,000–$80,000, those holdings are valued at roughly $66 billion.

The latest buy was funded entirely through Strategy’s at-the-market equity offering program. The company sold 4,531,421 shares of its common stock (MSTR) during the period, generating $602.8 million in net proceeds.

Of that amount, $369.7 million went toward bitcoin, while $151.8 million was used to repurchase shares of its STRC preferred stock. The firm also increased its USD Cash position by about $29–30 million. As a result, Strategy now reports $6.71 billion in total USD assets and has brought its net leverage to zero.

Saylor highlighted the moves in a post on X, noting the bitcoin acquisition alongside the cash increase and preferred-stock repurchase. The announcement followed his earlier “We’re back” message, which market observers interpreted as a signal that buying would resume.

During the preceding pause, Strategy had sold thousands of bitcoin and raised substantial capital through share issuances to rebuild liquidity and reduce leverage after pressure on its stock and preferred shares.

Despite the bullish signal from one of Bitcoin’s most prominent corporate buyers, the price reaction on the day of the formal announcement was muted to negative in the short term.

Bitcoin traded near $78,000, with charts showing a sharp intraday drop from levels above $78,700 toward the $77,900 area amid broader market selling.

Crypto commentary accounts highlighted the contrast, noting that even a nearly $370 million buy from Strategy coincided with downward price pressure rather than an immediate rally.

The purchase reinforces Strategy’s long-standing approach of treating bitcoin as its primary treasury reserve asset. By issuing equity to fund additional bitcoin while simultaneously strengthening its dollar reserves and preferred-stock position, the company continues to expand its holdings while aiming to maintain a more resilient balance sheet.

Outlook

Looking ahead, Strategy’s return to Bitcoin accumulation could signal a renewed commitment to expanding its cryptocurrency holdings after prioritizing liquidity and balance-sheet strength for much of the summer.

The company’s ability to raise capital through its at-the-market equity programs will remain a key factor in determining the pace of future Bitcoin purchases.

EU Designates ChatGPT, Reddit And Roblox As Very Large Platforms, Gives Them Four Months To Comply With DSA

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The European Commission on Monday designated ChatGPT, Reddit and Roblox as “very large online platforms” under the European Union’s Digital Services Act, bringing the services under a tougher set of regulatory requirements covering content moderation, user safety and systemic risks.

The three services have each reported reaching at least 45 million monthly active users in the European Union, the threshold for classification as a very large online platform or search engine under the DSA.

The designation gives the companies four months to comply with the additional obligations imposed on the bloc’s largest digital services.

The rules require the platforms to identify and mitigate risks associated with the spread of illegal content, while taking measures to address potential harm to minors and risks to users’ physical and mental wellbeing.

The European Commission will also assess whether the platforms adequately manage risks that could affect fundamental rights, electoral processes and public security.

The move places ChatGPT in a significant regulatory category. The Commission said the AI service qualifies as an online search engine under the DSA, meaning OpenAI will have to meet obligations designed for services that can expose users to large volumes of information and content.

Reddit and Roblox fall under the online-platform category because both allow users to disseminate content to the public. Reddit is primarily a discussion and community platform, while Roblox combines gaming with a large ecosystem of user-generated content and social interaction.

Tougher Scrutiny for AI And User-Generated Content

The designations expand the EU’s direct oversight of major services whose influence extends beyond traditional social media.

For OpenAI, the decision adds another layer of regulatory scrutiny as ChatGPT evolves from a conversational AI product into a broader information, search, and productivity service. Its classification as an online search engine means the company will face DSA obligations even though ChatGPT’s core functionality differs substantially from conventional search engines.

The rules require very large platforms and search engines to conduct regular assessments of systemic risks and take measures to reduce those risks. The Commission can investigate whether companies are complying with their obligations and examine the design and functionality of the services.

For Reddit and Roblox, the designation places greater emphasis on the risks created by user-generated content. Both platforms host large volumes of material created by users, increasing the importance of systems that can identify illegal content and protect younger users.

The Commission’s focus on minors is particularly relevant to Roblox, whose platform has a substantial youth user base and combines gaming, social interaction and user-generated experiences.

The DSA has created a regulatory framework in which the largest digital platforms face obligations that go beyond ordinary content moderation. The EU can require designated companies to provide information, conduct risk assessments and implement measures aimed at reducing systemic threats.

The latest designations therefore increase the number of major technology services subject to the bloc’s highest level of digital oversight and reinforce the EU’s broader effort to hold large online platforms accountable for the effects of their products.

The four-month compliance period gives ChatGPT, Reddit and Roblox time to put the required systems in place. The Commission will then have greater authority to assess whether their measures are adequate and investigate potential violations.

For OpenAI in particular, the designation comes as governments increasingly examine how rapidly expanding AI services should be regulated when they function not only as conversational assistants but also as gateways to information, content and automated services.

The classification signals that the EU intends to apply its digital rules according to how a service operates and the scale of its reach, rather than relying solely on traditional definitions of social media or search.