News

The CEO Sam Altman says OpenAI is slowly losing money due to the pricey ChatGPT Pro plan

Sam Altman, the CEO of OpenAI, stated on Sunday that its $200/month ChatGPT Pro package is presently losing money because users are utilizing it more than the business anticipated.

“I personally chose the price,” Altman wrote in a series of posts on X, “and thought we would make some money.”

Launched late last year, ChatGPT Pro removes rate constraints on a number of OpenAI’s other tools, such as the Sora video generator, and provides access to an enhanced version of the company’s o1 “reasoning” AI model, o1 pro mode.

Despite having raised almost $20 billion since its inception, OpenAI is not profitable. According to reports, the business anticipated losses of almost $5 billion on $3.7 billion in revenue from the previous year.

The costs include infrastructure for AI training, office rent, and personnel. At one point, ChatGPT was predicted to cost OpenAI $700,000 every day.

As it is ready for a corporate reorganization to draw in new investors, OpenAI recently acknowledged that it requires “more capital than it imagined.” According to reports, OpenAI is thinking about raising the cost of its many subscription tiers in order to turn a profit. In 2029, the firm hopes to attain $100 billion in revenue, which would match Nestlé’s present yearly revenues.

Read Also:

  1. Accel Closes A New India Fund Worth $650 Million
  2. OpenAI Failing To Supply The Opt-Out Tool Which Is Promised By 2025
  3. Cybertruck blast right outside the Trump hotel in Vegas leaves 1 dead, and 7 injured

News Source

Avijit Sah

Avijit Sah is a digital marketing expert specializing in SEO, social media, and content strategy. With a passion for helping businesses grow online, Avijit Sah uses data-driven tactics to boost visibility and engagement. Follow Avijit for the latest digital marketing tips and insights.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button