Key Points
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The Trade Desk (NASDAQ: TTD) is in discussions with OpenAI for a potential partnership aimed at selling ads on ChatGPT.
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This partnership could provide a new revenue stream for The Trade Desk as it seeks to repair its core business amid competition from larger players like Google and Amazon.
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Shares of The Trade Desk surged 18.4% on the news, though the stock has experienced over an 80% decline in the past year.
The Trade Desk is reportedly negotiating with OpenAI regarding the potential sale of ads through ChatGPT, a move that could significantly enhance the company’s operations in the fast-evolving ad tech landscape. The stock’s jump followed reports of these discussions, contrasting with the company’s struggle against market rivals, resulting in an 80% decline over the previous year.
Despite the positive news, experts caution that this preliminary partnership will not immediately stabilize The Trade Desk’s declining revenue growth. The company will need to strengthen its core business beyond this potential deal to recover fully.
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