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OpenAI CEO Sam Altman recently revealed that the company is currently losing money on its $200-per-month ChatGPT Pro plan, as users are taking full advantage of the service far beyond initial expectations. “I personally chose the price,” Altman shared in a series of posts on X, “and thought we would make some money.”
ChatGPT Pro, introduced late last year, offers access to OpenAI’s upgraded o1 “reasoning” model, removes rate limits, and unlocks premium features such as the Sora video generator. At $2,400 annually, the price initially raised eyebrows, with the value of certain features like o1 pro mode not entirely clear. However, Altman’s comments suggest that those who subscribed have been using the service extensively — so much so that OpenAI’s margins are taking a hit.
This isn’t the first time OpenAI has approached pricing somewhat experimentally. In an interview with Bloomberg, Altman admitted that the initial pricing of ChatGPT’s premium plan lacked formal research. “We tested two prices, $20 and $42. People thought $42 was a little too much. They were happy to pay $20,” Altman explained, referencing the launch in late 2022 or early 2023. “It wasn’t a rigorous ‘hire someone and do a pricing study’ decision.”
Despite raising approximately $20 billion since its inception, OpenAI remains unprofitable. Last year, the company reportedly incurred losses of $5 billion against $3.7 billion in revenue. Operational costs such as staff salaries, office expenses, and the massive infrastructure needed for AI training and deployment have driven expenses sky-high. At one point, ChatGPT alone was estimated to cost OpenAI around $700,000 per day to operate.
As OpenAI undergoes a corporate restructuring to secure additional investments, Altman has acknowledged that the company needs “more capital than it imagined.” OpenAI is reportedly considering raising subscription prices or introducing usage-based pricing models to reach profitability. Altman hinted at these possibilities in his Bloomberg interview, aligning with projections that OpenAI’s revenue could hit $11.6 billion this year and potentially skyrocket to $100 billion by 2029 — numbers that would rival the current annual sales of major corporations like Nestlé.
For now, OpenAI faces the challenge of balancing user value with financial sustainability as it refines its pricing strategies to achieve long-term growth.
Source: https://techcrunch.com/2025/01/05/o...-pricey-chatgpt-pro-plan-ceo-sam-altman-says/
ChatGPT Pro, introduced late last year, offers access to OpenAI’s upgraded o1 “reasoning” model, removes rate limits, and unlocks premium features such as the Sora video generator. At $2,400 annually, the price initially raised eyebrows, with the value of certain features like o1 pro mode not entirely clear. However, Altman’s comments suggest that those who subscribed have been using the service extensively — so much so that OpenAI’s margins are taking a hit.
This isn’t the first time OpenAI has approached pricing somewhat experimentally. In an interview with Bloomberg, Altman admitted that the initial pricing of ChatGPT’s premium plan lacked formal research. “We tested two prices, $20 and $42. People thought $42 was a little too much. They were happy to pay $20,” Altman explained, referencing the launch in late 2022 or early 2023. “It wasn’t a rigorous ‘hire someone and do a pricing study’ decision.”
Despite raising approximately $20 billion since its inception, OpenAI remains unprofitable. Last year, the company reportedly incurred losses of $5 billion against $3.7 billion in revenue. Operational costs such as staff salaries, office expenses, and the massive infrastructure needed for AI training and deployment have driven expenses sky-high. At one point, ChatGPT alone was estimated to cost OpenAI around $700,000 per day to operate.
As OpenAI undergoes a corporate restructuring to secure additional investments, Altman has acknowledged that the company needs “more capital than it imagined.” OpenAI is reportedly considering raising subscription prices or introducing usage-based pricing models to reach profitability. Altman hinted at these possibilities in his Bloomberg interview, aligning with projections that OpenAI’s revenue could hit $11.6 billion this year and potentially skyrocket to $100 billion by 2029 — numbers that would rival the current annual sales of major corporations like Nestlé.
For now, OpenAI faces the challenge of balancing user value with financial sustainability as it refines its pricing strategies to achieve long-term growth.
Source: https://techcrunch.com/2025/01/05/o...-pricey-chatgpt-pro-plan-ceo-sam-altman-says/
