- OpenAI CEO Sam Altman admitted 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 toward competitors.
OpenAI CEO Sam Altman has shared on X that that the company is losing money on the $200-per-month ChatGPT Pro plan. He didn’t elaborate on if or how OpenAI might address that issue, 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’ve subscribed to ChatGPT Plus since it became available. I use it to experiment and test features for work, but I’ve also enjoyed playing with it in my own life to come up with dinner ideas, entertain children, and brainstorm gift ideas, among other tasks. Paying $20 a month for faster responses, better AI models, and early access to new features like the Sora AI video creator is a good deal.
ChatGPT Pro scales up those benefits enormously, with access to the o1 pro mode model, along with unlimited use of Sora and higher rate limits on API calls. If you’re a power user, a video content creator, or a software developer cranking out AI-driven projects, I’m sure the $200 a month might seem like a good deal, too.
Altman’s admission that Pro isn’t covering its costs raises a big red flag. If Pro users are pushing the limits of what OpenAI’s infrastructure can handle, and the company needs “more capital than it imagined,” where does that leave the rest of us? If Pro’s financial strain means OpenAI might bump up the price for Plus as well, I’ll have to reassess whether I’m getting enough bang for my buck.
insane thing: we are currently losing money on openai pro subscriptions!people use it much more than we expected.January 6, 2025
ChatGPT$$$
Altman’s comments also reminded me that it was rumored ChatGPT Plus would 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 readily. If Plus prices creep upwards to maybe $30, I might keep up my subscription, but I’d have to consider seriously if it’s worth it. As much fun as Sora can be, I’m not editing blockbuster movies here.
Plus, it’s not like OpenAI’s competitors are sitting still. Google Gemini and other competitors are offering bundles of bonuses for subscribers to premium features, often linked to other products like Google One. And OpenAI isn’t exactly running on fumes. The company has raised billions in funding and expects to hit $11.6 billion in revenue this year. If it can’t make its products sustainable without constantly squeezing its subscribers, that suggests deeper issues.
One option sometimes floated is usage-based pricing, but that sounds like a logistical nightmare. Imagine being charged by the question or the word count when you use ChatGPT as an individual and not under a business account. Suddenly, you’re overthinking every query: “Do I really need to ask GPT for help with this?”
I’m sticking with ChatGPT Plus for now but keeping a finger over the metaphorical cancel button in case of major price increases. It’s already annoying seeing the subscription prices rise unexpectedly for Netflix or Spotify, but I’d put up with more hassle to keep those services than I would ChatGPT Plus. I enjoy ChatGPT, but it’s not $50 a month enjoyment.