EU cracks down on ChatGPT, Reddit, Roblox as OpenAI hits $1B ad revenue

ChatGPT, Reddit, and Roblox face strict EU DSA rules due to high user numbers. They have four months to comply or risk major fines. OpenAI’s ChatGPT ads hit $1B annualized revenue, fueling IPO plans.

The European Commission has placed ChatGPT, Reddit, and Roblox under the strictest regime of the Digital Services Act (DSA). ChatGPT is classified as a Very Large Online Search Engine, while Reddit and Roblox are designated as Very Large Online Platforms. This decision is based on exceeding 45 million average monthly users in the EU: ChatGPT reported 159.1 million, Reddit 57.2 million, and Roblox just over the threshold. These platforms now face enhanced obligations, such as removing illegal content and protecting minors’ privacy and safety. They have four months to comply or risk fines of up to 6% of global revenue. Anthropic’s Claude was not included due to a smaller user base. Meanwhile, OpenAI announced that ChatGPT’s advertising business reached a $1 billion annualized revenue run rate in under 200 days. This supports its free tier and boosts IPO ambitions, aiming for a valuation above $1 trillion. The DSA’s expansion into generative AI marks a significant regulatory shift for the digital ecosystem.