OpenAI CEO Sam Altman mentioned that the company is facing losses with their $200-per-month ChatGPT Pro plan due to higher usage than anticipated.
In a series of posts on X, Altman stated that he set the price and expected to generate profit.
ChatGPT Pro, launched recently, provides access to an enhanced version of OpenAI’s o1 “reasoning” AI model, o1 pro mode, and removes rate limits on various other tools like the Sora video generator.
Despite raising approximately $20 billion in funding, OpenAI is not yet profitable. Reports suggest that the company anticipated losses of $5 billion on revenue of $3.7 billion last year.
Expenses such as staffing, office rental, and AI training infrastructure are contributing to the company’s lack of profitability. Running ChatGPT was estimated to cost OpenAI $700,000 per day at one point.
OpenAI recently acknowledged the need for more capital and is planning a corporate restructuring to attract new investments in order to become profitable. One strategy being considered is raising the prices of subscription tiers. The company optimistically predicts a revenue of $100 billion in 2029, matching Nestlé’s current annual sales.
