OpenAI has launched a new subscription service called ChatGPT Pro, which can cost up to $200 per month. However, OpenAI CEO Sam Altman says that the service is proving to be a loss-making deal for the company. Pro users get advanced features and unlimited usage options, but the company is under heavy pressure on its operating expenses.
OpenAI launched the ChatGPT Pro subscription plan in late 2024, with a monthly fee 10 times higher than ChatGPT Plus. That is, it goes up to $200 (about NT$6,550). With this plan, users can take advantage of unlimited features like the o1 Pro model and GPT-4o. Also, limitations of other tools like advanced voice mode, ‘Sura’ have also been removed.
But, according to OpenAI CEO Sam Altman, “We are making a loss on the Pro subscription. People are using it much more than we expected.”
What did Sam Altman say?
In an interview with Bloomberg, Altman said that in the early days they did testing at prices of $20 and $42. “People found $42 too expensive, while $20 was something they were willing to pay happily. So we chose $20,” he said. However, OpenAI is facing financial problems with the current pricing model of ChatGPT Pro.
OpenAI’s financial challenges
OpenAI has raised more than $20 billion in funding so far, but the company has still not been able to make a profit. According to reports, OpenAI is likely to incur a loss of $5 billion in 2024, while projected revenue will only reach $3.7 billion.
Another shocking fact is that ChatGPT’s daily operating costs sometimes reach $700,000. As the number of users and the scale of their use is increasing, operating expenses are also increasing.
OpenAI in search of profit
OpenAI has admitted that it needs more funding than expected. Despite raising $6.6 billion in funding in 2023, the company is now planning changes to its corporate structure to attract more investors.
Also, there are rumors that OpenAI is considering raising the prices of various subscription plans. Sam Altman indicated in an interview with Bloomberg that in the future OpenAI may decide the price of some services based on their actual usage.
What’s new?
Recently, OpenAI has added features like ‘Advanced Voice Mode’, which makes voice recognition even better. Along with this, the company is working on new models of GPT-4, which will make the answers even faster and more accurate.
Technical experts believe that OpenAI needs to strike a balance between the price of its services and operating expenses. If prices are raised too much, it could discourage users. Users using ChatGPT Pro may be getting a premium experience, but it is proving to be a loss-making deal for OpenAI. Now it remains to be seen how the company makes its model sustainable and profitable.
