OpenAI CEO Sam Altman says that the company is currently losing money on its $200-per-month ChatGPT Pro plan because people are using it more than expected
“I personally chose the price,” Altman wrote in a series of posts on X, “and thought we would make some money.”
OpenAI launched ChatGPT Pro toward the end of last year. In addition to granting access to an upgraded version of OpenAI’s o1 “reasoning” AI model, o1 pro mode, ChatGPT Pro lifts rate limits on several of the company’s other tools, including its Sora video generator.
OpenAI isn’t profitable, despite having raised around $20 billion since its founding. The company reportedly expected about $5 billion in losses on $3.7 billion in revenue last year.
Expenditures like staffing, office rent, and AI training infrastructure are to blame. ChatGPT was at one point costing OpenAI an estimated $700,000 per day.
Recently, OpenAI admitted it needs “more capital than it imagined” as it prepares to undergo a corporate restructuring to attract new investments. To reach profitability, OpenAI is said to be considering increasing the price of its various subscription tiers; the company optimistically projects its revenue will reach $100 billion in 2029, matching the current annual sales of Nestlé.
techcrunch
Exclusive: Meta kills DEI programs AxiosMeta to end diversity programs ahead of Trump inauguration ReutersFacebook owner Meta…
Homes burned in the Palisade fire smolder near the Pacific Palisades neighborhood of Los Angeles…
New York CNN — US stocks slid Friday as investors digested a better-than-expected jobs report…
US hits Russian oil with toughest sanctions yet in bid to give Ukraine, Trump leverage ReutersBiden…
CNN — A Delta Air Lines jet with more than 200 people on board was…
Almost a year ago today, Miami pulled off the shocker of the 2023-24 transfer cycle:…