What Amazon announced
Amazon is partnering with OpenAI so advertisers that already work with Amazon can extend their campaigns into ChatGPT. The rollout starts with select brands in the U.S. In explaining the move, Amazon described conversational ad formats in AI chatbots as the "fastest growing engagement opportunity" for connecting with both new and existing shoppers.
How the ads will work
Amazon will handle the setup and management of ad campaigns. An Amazon spokesperson said OpenAI's ads system will make all the decisions about ad delivery. The placements will show up under ChatGPT responses as text or image units.
Why this is happening now
For the world's largest online retailer, letting its advertisers reach people inside ChatGPT is an acknowledgment that the chatbot has become a credible marketing channel. OpenAI rolled out paid ad slots within ChatGPT for U.S. users in February, with early retail participants including Best Buy and Williams-Sonoma. OpenAI also reported in February that ChatGPT hit 900 million weekly active users, and the ads business has gathered steam, recently climbing to an annualized revenue pace of $1 billion.
The context and what it could mean for your portfolio
Amazon has kept tight limits on outside AI models tapping its sprawling webstore, including ChatGPT, Anthropic's Claude, and Google's Gemini, even as it builds its own AI shopping tools. Yet in recent months it quietly started buying ChatGPT ads and, according to Sensor Tower, rose to the No. 1 retail advertiser on the platform spanning April through August. "With Access to ChatGPT Ads, advertisers can now extend their campaigns further into where their customers are actively spending time in conversational chat platforms," said Chris Conetta, who oversees omnichannel supply for Amazon's demand-side advertising platform.
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With Andy Jassy at the helm and Amazon now opening this door for its advertisers, watch how ad budgets follow shoppers into AI chat experiences. If more retail dollars chase that attention, companies tied to digital ads and commerce could see a tailwind.
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