On Sunday, OpenAI CEO Sam Altman revealed that the company is losing money on its $200-per-month ChatGPT Pro plan due to unexpectedly high user activity. “I personally chose the price,” Altman shared in a series of posts on X, “and thought we would make some money.”
ChatGPT Pro, launched in late 2023, offers premium features such as access to the enhanced o1 “reasoning” model, reduced rate limits, and tools like the Sora video generator. Priced at $2,400 annually, the subscription was initially met with skepticism, particularly regarding the unclear value of certain features. However, according to Altman, those who subscribed are utilizing the plan so extensively that it’s becoming a financial challenge for OpenAI.
This isn’t the first instance of OpenAI’s unconventional pricing strategies. In a Bloomberg interview, Altman admitted that the company’s original premium ChatGPT plan didn’t rely on formal market research. “We tested two prices, $20 and $42,” he explained. “People felt $42 was too high but were comfortable paying $20. It wasn’t a rigorous pricing study; we just made a decision.”
Despite raising approximately $20 billion since its inception, OpenAI has yet to achieve profitability. In 2023, the company reportedly incurred a loss of $5 billion against $3.7 billion in revenue. High operating costs, including staffing, infrastructure, and training advanced AI models, have significantly impacted its bottom line. At one point, operating ChatGPT alone was costing OpenAI an estimated $700,000 daily.
OpenAI has acknowledged that its capital needs are greater than initially anticipated. To attract new investments, the company is undergoing a corporate restructuring. It is also exploring strategies to boost profitability, including increasing subscription prices or introducing usage-based pricing models. Altman hinted at these possibilities during his Bloomberg interview, emphasizing the need for sustainable growth.
Looking ahead, OpenAI remains optimistic about its revenue potential. The company projects $11.6 billion in revenue for 2025 and aims to reach $100 billion annually by 2029, a figure that would place it on par with global giants like Nestlé. However, the path to achieving these lofty goals will require careful financial planning and balancing user demand with sustainable pricing models.
Source: https://techcrunch.com/2025/01/05/o...-pricey-chatgpt-pro-plan-ceo-sam-altman-says/
ChatGPT Pro, launched in late 2023, offers premium features such as access to the enhanced o1 “reasoning” model, reduced rate limits, and tools like the Sora video generator. Priced at $2,400 annually, the subscription was initially met with skepticism, particularly regarding the unclear value of certain features. However, according to Altman, those who subscribed are utilizing the plan so extensively that it’s becoming a financial challenge for OpenAI.
This isn’t the first instance of OpenAI’s unconventional pricing strategies. In a Bloomberg interview, Altman admitted that the company’s original premium ChatGPT plan didn’t rely on formal market research. “We tested two prices, $20 and $42,” he explained. “People felt $42 was too high but were comfortable paying $20. It wasn’t a rigorous pricing study; we just made a decision.”
Despite raising approximately $20 billion since its inception, OpenAI has yet to achieve profitability. In 2023, the company reportedly incurred a loss of $5 billion against $3.7 billion in revenue. High operating costs, including staffing, infrastructure, and training advanced AI models, have significantly impacted its bottom line. At one point, operating ChatGPT alone was costing OpenAI an estimated $700,000 daily.
OpenAI has acknowledged that its capital needs are greater than initially anticipated. To attract new investments, the company is undergoing a corporate restructuring. It is also exploring strategies to boost profitability, including increasing subscription prices or introducing usage-based pricing models. Altman hinted at these possibilities during his Bloomberg interview, emphasizing the need for sustainable growth.
Looking ahead, OpenAI remains optimistic about its revenue potential. The company projects $11.6 billion in revenue for 2025 and aims to reach $100 billion annually by 2029, a figure that would place it on par with global giants like Nestlé. However, the path to achieving these lofty goals will require careful financial planning and balancing user demand with sustainable pricing models.
Source: https://techcrunch.com/2025/01/05/o...-pricey-chatgpt-pro-plan-ceo-sam-altman-says/
