It's the first time any video clip has hit that mark on the streaming service, which is owned by Google Inc.
The video has been available on YouTube since July 15. Since then, it has averaged more than 200 million views per month.
Justin Bieber's video for his hit "Baby" held the previous YouTube record at more than 800 million views.
Earlier this month, "Gangnam Style" was the second highest trending search of the year on Google. The top search was Whitney Houston, who passed away in February.
The Associated Press contributed to this report.