OpenAI CEO Sam Altman revealed in a series of posts on X that the company is losing money on its $200-per-month ChatGPT Pro plan because users are consuming more resources than anticipated.
ChatGPT Pro, introduced in late 2022, provides users with enhanced capabilities, including access to OpenAI’s “reasoning” model and its pro mode. Despite the premium features, the plan isn’t generating enough revenue to cover costs. OpenAI is still not profitable, despite raising an estimated $20 billion since its founding.
In a series of posts on X (formerly Twitter), Altman said, “I personally chose the price and thought we would make some money.”
OpenAI, since its founding has raised an estimated $20 billion; yet it still is not profitable. In 2023, the company reportedly faced losses of around $5 billion, even as it earned $3.7 billion in revenue. Operational expenses such as staffing, office rents, and the infrastructure needed to train AI models have contributed to the deficit. Running ChatGPT alone was once estimated to cost the company around $700,000 per day.
OpenAI has admitted that it requires “more capital than it imagined” and is planning a corporate restructuring to attract new investments. To address its financial concerns, the company is reportedly considering increasing subscription prices across its offerings.
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