OpenAI Ads Hit $1 Billion ARR As It Cuts Ties With As Cursor Due To Elon Musk

Just as OpenAI’s advertising business reaches a major revenue milestone, the company is preparing to close another commercial door.

ChatGPT Ads has hit a $1 billion annualized revenue run rate, while OpenAI moves to cut its models from SpaceX-owned Cursor.
 

TL;DR

 

• ChatGPT Ads has reached a $1 billion annualized revenue run rate as OpenAI expands advertising internationally.
• Advertisers in India, Europe, the Middle East and North Africa can now buy ads directly through Ads Manager.
• OpenAI plans to stop providing models to SpaceX-owned Cursor on November 12, 2026, citing concerns over compliance with its terms.

 

OpenAI Expands ChatGPT Ads Globally After $1 Billion Run Rate Milestone

OpenAI said that ChatGPT Ads reached a $1 billion annualized revenue run rate (ARR as adoption increased and its advertising business expanded into more markets.

Starting Monday, advertisers across India, Europe, the Middle East and North Africa can purchase ChatGPT ads directly through OpenAI’s Ads Manager, which was already available in the United States.

The tool has helped attract small- and medium-sized businesses, with OpenAI saying SMBs now represent a “material share” of its advertising business. Advertisers outside the U.S. also account for a growing share of revenue, although the company did not provide specific figures.

OpenAI currently displays ads to users on ChatGPT’s free tier and lower-priced Go plan. The milestone follows rapid early growth in the U.S., where its advertising pilot crossed $100 million in annualized revenue within six weeks of launching, according to the company in April.

The expansion gives OpenAI another potential revenue engine as it prepares for a possible public listing, having confidentially filed for a U.S. IPO earlier this year.
 

 

OpenAI Moves To Cut Off Cursor After SpaceX Acquisition

While its advertising operation expands, OpenAI is tightening access to its AI models elsewhere.

The company said Friday that it plans to stop providing models to Cursor, the coding tool now owned by Elon Musk’s SpaceX, saying it was not confident SpaceX would use its technology within OpenAI’s terms of service.

“We are making this choice because we cannot be confident that SpaceX will use our technology within our terms of service, based on our experience with Elon Musk's companies violating contracts,” OpenAI said.

OpenAI proposed November 12, 2026, as the shutoff date, saying its agreement with Cursor provides a limited cancellation window following a change of control.

SpaceX agreed to acquire Anysphere, the startup behind Cursor, for $60 billion in an all-stock deal in June and completed the acquisition earlier this month.
 

 

Anthropic Boosts Claude Support As Cursor Seeks OpenAI Resolution

Cursor co-founder and SpaceX executive Michael Truell said the company was speaking with OpenAI to resolve the issue.

Musk was less conciliatory, responding on X that he “couldn't care less” while renewing his criticism of OpenAI CEO Sam Altman and President Greg Brockman.

Hours after OpenAI announced its decision, Anthropic said it planned to increase compute support for Claude models in Cursor.

The developments leave OpenAI moving in two very different commercial directions at once, expanding ChatGPT monetization across new markets while preparing to end a major AI model relationship caught in its long-running dispute with Musk.