Amazon has announced a new partnership between its Ads business and OpenAI, allowing advertisers to buy ads within the ChatGPT chatbot. Initially launching as a pilot in the U.S., this partnership means brands can purchase ChatGPT ads through Amazon’s Demand-Side Platform (DSP), instead of dealing directly with OpenAI. This could make it easier for companies that already use Amazon's advertising tools to reach users within the ChatGPT interface. The partnership highlights the growing importance of conversational advertising, where brands can reach consumers in the spaces they spend increasing amounts of time—like chatbots and messaging apps. Compared to traditional advertising channels, this form of advertising is still relatively underdeveloped, offering new opportunities for brands to connect with users in more natural, interactive ways. Amazon emphasized that it will not control which ChatGPT conversations receive ads. Instead, the company will act as an intermediary, helping advertisers set up and optimize their campaigns while OpenAI handles the placement of ads within the chatbot. Both text and image ads can appear beneath ChatGPT’s responses, and OpenAI will clearly label them as sponsored content to distinguish them from regular chatbot output. Amazon is offering two payment models for these ads: cost per click (CPC), where advertisers pay each time a user clicks on the ad, and cost per thousand impressions (CPM), where payment is based on the number of times the ad is shown. Delta Vacations, one of the early adopters, praised the partnership, saying it allows the company to use consumer insights to better time and place its ads within ChatGPT, helping travelers discover vacation options. OpenAI already has its own advertising program, but partnering with Amazon gives it access to a large pool of established advertisers already using Amazon’s platform. As the third-largest digital advertising business, with around $70 billion in annual ad revenue, even a small share of this could provide a significant boost to OpenAI’s advertising efforts.