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OpenAI is losing money on its expensive ChatGPT Pro plan, says CEO Sam Altman

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OpenAI is losing money on its expensive ChatGPT Pro plan, says CEO Sam Altman

OpenAI CEO Sam Altman said the company is currently losing money for the $200 monthly ChatGPT Pro plan because people are using it more than expected. ” OpenAI launched ChatGPT Pro late last year. In addition to giving access to the updated version of OpenAI’s “reasonable” AI model, o1 pro mode, ChatGPT Pro lifts the rate limit on some of the company’s other tools, including the Sora video generator. OpenAI is not profitable, although it has generated about $20 billion since its founding. The company reported an estimated $5 billion loss on $3.7 billion in revenue last year. Expenses like staff, office rent, and AI training infrastructure are to blame. ChatGPT was at one point costing OpenAI approximately $700,000 per day. Recently, OpenAI admitted that it needs “more capital than imagined” as it prepares to undergo a corporate restructuring to attract new investment. To achieve profitability, OpenAI is said to be considering increasing the price of various subscription tiers; the company optimistically projects revenue to reach $100 billion in 2029, corresponding to NestlĂ©’s current annual sales.

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