Sam Altman Admits OpenAI Is Losing Money Due to ChatGPT's Most Expensive Subscription Plan
OpenAI CEO Sam Altman said the company is currently losing money on its $200 ChatGPT Pro plan. He claims people are using it more than the company expected.
OpenAI CEO Sam Altman said the company is currently losing money on its $200 ChatGPT Pro plan. He claims people are using it more than the company expected.
«I personally chose the price, and I thought we would make some money,» Altman was quoted as saying by TechCrunch.
The ChatGPT Pro subscription plan, launched late last year, provides access to an updated version of OpenAI’s o1 «reasoning» artificial intelligence model, o1 pro mode, and removes speed caps on some of the company’s other tools, including the Sora video generator.
OpenAI is still not a profitable company, despite raising about $20 billion since its founding. The company expected to lose about $5 billion on revenue of $3.7 billion last year. The reason is the cost of maintaining staff, renting an office and infrastructure for training AI. At one point, ChatGPT was costing OpenAI about $700,000 per day.
OpenAI recently admitted that it needs «more capital than it imagined» as it prepares for a corporate restructuring to attract new investment. OpenAI is said to be considering raising prices for its various subscription tiers to achieve profitability. The company optimistically projects that its revenue will reach $100 billion by 2029.
Recall that previously OpenAI and defense startup Anduril announced a collaboration. As part of the partnership, OpenAI will integrate its software into Anduril’s anti-drone systems, which detect and shoot down drones.
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OpenAI restores ChatGPT and Sora after outage
OpenAI restores ChatGPT and Sora after outage
ChatGPT Search is now available in a free version, with several new features
ChatGPT Search is now available in a free version, with several new features
Expert: A year and a half ago it was impossible to imagine that someone would eat away at Google’s market share. Now ChatGPT search is already doing it, and doing it deservedly.
Expert: A year and a half ago it was impossible to imagine that someone would eat away at Google’s market share. Now ChatGPT search is already doing it, and doing it deservedly.
