- Sam Altman, CEO of OpenAI, admitted that the company is losing money on its $200 per month ChatGPT Pro plan.
- A significant price increase could make users question its affordability.
- OpenAI’s pricing strategy may push users towards competitors.
OpenAI CEO Sam Altman shared on X that the company is losing money on the $200 per month ChatGPT Pro plan. He didn’t elaborate on whether or how OpenAI could address this problem, but raising the price seems like an obvious option. Will that drive people away from the premium service? More importantly, will that trickle down to a higher price tag for ChatGPT Plus, which is currently $20?
I have been subscribed to ChatGPT Plus since it became available. I use it to experiment and test features at work, but I’ve also had fun playing with it in my own life to come up with dinner ideas, entertain kids, and brainstorm gift ideas, among other things. Paying $20 a month for faster responses, better AI models, and early access to new features like the Sora AI video maker is a good deal.
ChatGPT Pro greatly extends these benefits, with access to the o1 pro mode model, along with unlimited use of Sora and higher rate caps on API calls. If you’re a power user, a video content creator, or a software developer doing AI-driven projects, I’m sure the $200 per month seems like a good deal too.
Altman’s admission that Pro won’t cover his costs raises a major red flag. If Pro users are pushing the limits of what OpenAI’s infrastructure can handle, and the company “needs more capital than anticipated,” where does that leave the rest of us? If the financial pressure from Pro means that OpenAI could also increase the price for Plus, I’ll have to reassess whether I’m getting enough bang for my buck.
insane: we are currently losing money on openai pro subscriptions! people are using it a lot more than we expected.January 6, 2025
ChatGPT$$$
Altman’s comments also reminded me that ChatGPT Plus was rumored to cost $42 per month before it came out. It’s a number that feels absurd now, but if OpenAI had gone that route I probably wouldn’t have signed up, or at least not as easily. If the Plus prices go up to maybe $30, I might continue my subscription, but I’d have to seriously consider whether it’s worth it. As fun as Sora can be, I’m not editing blockbuster movies here.
Moreover, OpenAI’s competitors are not sitting still. Google Gemini and other competitors offer bundles of bonuses for subscribers of premium features, often tied to other products like Google One. And OpenAI isn’t exactly running on fumes. The company has raised billions in funding and expects to reach $11.6 billion in revenue this year. If it can’t make its products sustainable without putting constant pressure on its subscribers, that signals deeper problems.
One option that is sometimes suggested is usage-based pricing, but that sounds like a logistical nightmare. Imagine being charged based on demand or word count when you use ChatGPT as an individual and not under a business account. Suddenly you’re thinking too much about every question: “Should I really ask GPT for help here?”
I’ll stick with ChatGPT Plus for now, but keep a finger on the metaphorical cancel button in case of big price increases. It’s already annoying to see subscription prices rise unexpectedly for Netflix or Spotify, but I’d put up with more hassle to keep those services than ChatGPT Plus. I enjoy ChatGPT, but it’s not a $50 a month pleasure.