Yelp recently partnered with OpenAI, granting access to a vast collection of local business insights. This strategic data licensing agreement allows OpenAI to utilize Yelp's extensive database, which includes 330 million user-generated reviews and over 8 million business listings, to enhance local recommendations within ChatGPT.
In unveiling this partnership during Yelp's fourth quarter and full-year 2025 earnings report, CEO Jeremy Stoppelman emphasized the significance of expanding Yelp's content into the realm of artificial intelligence-driven local discovery. Although specific financial terms were not disclosed, Yelp's overall performance reflects a successful shift beyond traditional advertising revenue. The company's net revenue reached a record $1.46 billion in 2025, with a notable 17% year-over-year increase in its licensing revenue category, which encompasses data collaborations like the one with OpenAI.
This partnership is not entirely new; Yelp has been integrating OpenAI's models since April 2024 for its Yelp Assistant, a tool designed to facilitate user navigation of local businesses. Stoppelman has hinted at potential further collaborations, suggesting that Yelp sees the data licensing model as a key driver of future growth, rather than just a singular opportunity.
How are AI partnerships shaping Yelp’s future? The trend of data licensing for AI-driven applications is part of a broader movement across industries. OpenAI has been actively establishing collaboration agreements with various content providers, and other companies, like Reddit, have made similar moves to license their data to tech giants. As these deals become more prevalent, the implications for investors are significant.
What does this mean for Yelp and its investors? Yelp's robust earnings and growth in licensing suggest that the company is successfully diversifying its revenue streams. If Yelp can capitalize on additional AI partnerships, it may transform data licensing from a minor income source into a substantial growth driver. However, the company faces inherent risks, particularly concerning dependency on OpenAI. Should this relationship deteriorate or if OpenAI develops its own local data solutions, Yelp could see a decline in this revenue stream. Mitigating these concerns by diversifying its partnerships may prove key to sustaining growth in the long term.