OpenAI CEO: the company is losing money because of the overly popular ChatGPT Pro tariff
OpenAI CEO Sam Altman said the company is suffering losses on its $200-a-month ChatGPT Pro plan. Users are using the plan much more than expected, he said.
Here's What We Know
According to Altman, he personally chose the price hoping for a small profit, but the reality turned out to be different. The ChatGPT Pro plan, which launched late last year, provides access to an updated version of the o1 artificial intelligence model that can reason and removes speed limits on several of the company's other tools, including the Sora video generator.
Despite raising about $20 billion since its founding, OpenAI remains unprofitable. Last year, the company expected a loss of about $5 billion on revenue of $3.7 billion. Major expenses include staffing, office rent and infrastructure for AI training. At one point, ChatGPT was costing OpenAI about $700,000 a day.
The company recently admitted that it needs more capital than it had anticipated and is considering raising prices for different subscription tiers.
Source: @sama, techcrunch
