OpenAI CEO Sam Altman revealed on Sunday that the company is incurring unexpected losses on its $200-per-month ChatGPT Pro subscription. Users, it seems, are taking greater advantage of the plan than anticipated, prompting Altman to acknowledge, “I personally chose the price and thought we would make some money,” in a series of posts on X.
Launched late last year, ChatGPT Pro offers users access to an upgraded reasoning model known as o1 pro, unlimited usage of tools like the Sora video generator, and fewer rate restrictions. Despite these premium features, the plan has not been the revenue generator OpenAI initially hoped for.
The company’s broader financial challenges extend beyond the subscription tier. OpenAI, which has raised approximately $20 billion since its inception, is still not profitable. Last year, it reportedly faced losses of $5 billion against $3.7 billion in revenue. High operational costs, including AI training infrastructure, staffing, and office expenses, remain significant financial drains. Running ChatGPT alone once cost the company an estimated $700,000 per day.
In light of these challenges, OpenAI has acknowledged a greater-than-expected need for additional funding. As part of its strategy to secure new investments, the company is planning a corporate restructuring. OpenAI is also exploring adjustments to its subscription pricing tiers to help steer its path toward profitability. The company forecasts ambitious growth, projecting revenue of $100 billion by 2029, a figure that aligns with the current annual sales of consumer goods giant Nestlé.
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