OpenAI Faces Losses Due to ChatGPT Pro Plan Usage
Sam Altman, CEO of OpenAI, has revealed that the company is incurring losses due to higher-than-expected usage of the $200-per-month ChatGPT Pro plan, according to TechCrunch.
In a series of posts on X, Altman wrote, “I set the price myself and thought there would be some profit.”
OpenAI launched the ChatGPT Pro plan in late 2024. This plan offers access to the advanced W1 “reasoning” AI model and removes limitations on other tools, including the Sora video generator.
Although OpenAI has raised nearly $20 billion in funding, the company is yet to achieve profitability. Last year, it projected a loss of approximately $5 billion against a revenue of $3.7 billion.
Expenses related to employee salaries, office rents, and AI training infrastructure are the primary causes of these losses. Reports indicate that, at one point, ChatGPT cost OpenAI $700,000 daily.
Recently, OpenAI acknowledged that it requires more capital than initially anticipated. To attract new investments, the company is planning a corporate restructuring. As part of its strategy to achieve profitability, OpenAI is considering increasing the prices of its subscription plans.
The company aims to generate $100 billion in annual revenue by 2029, which would match the current annual sales of Nestlé.
