A publication from The New York Times suggests that OpenAI, the developer of ChatGPT, intends to gradually raise the cost of its ChatGPT Plus subscription over the next five years, as indicated in internal documents disclosed to prospective investors.
ChatGPT+ Revised Pricing
At present, the monthly subscription charge for ChatGPT Plus stands at $20, granting users access to the latest models, reduced restrictions, and the DALL-E image generation functionality. However, this pricing strategy is poised for alterations, with a projected increase to $22 per month by the conclusion of 2024, as illustrated in the table below.
This pricing structure could rise to as high as $44 per month by 2029. Furthermore, the report from The New York Times points out that OpenAI has roughly 10 million subscribers to ChatGPT Plus.
Additionally, with the iOS 18.2 update, Apple is gearing up to incorporate ChatGPT functionalities into Siri. These features will operate independently of an OpenAI account or a ChatGPT Plus subscription, allowing users to log in directly on iOS for enhanced capabilities.
The reasoning behind the anticipated price increase for ChatGPT Plus is clear: the operational costs of sustaining the AI service are remarkably high. The report also underscores that OpenAI is “burning through piles of money” and forecasts losses of $5 billion in 2024.
OpenAI is currently pursuing up to $7 billion in financing, a step that would elevate the company’s market valuation to $150 billion. While there were previous conversations about Apple potentially engaging in this funding round, it appears that the tech titan has lost interest. This new $150 billion assessment marks a considerable increase from $30 billion just a year ago when Microsoft commenced investment.
OpenAI Earnings
Currently, OpenAI is generating approximately $300 million in monthly income and is estimated to reach $3.7 billion in revenue for the year. Despite this, after factoring in its expenditures, the organization anticipates a loss of $5 billion due to the significant costs linked with AI development. OpenAI will likely need to seek additional funding to maintain its projects.
Of the projected $3.7 billion in annual revenue, around $2.7 billion is expected to originate from ChatGPT subscriptions, while the remaining $1 billion will derive from other tech companies utilizing its APIs for AI integration within their offerings. The company also anticipates that its revenue could triple in the upcoming year, potentially reaching $11.6 billion. By 2029, at the $44 monthly rate, they forecast earning $100 billion from ChatGPT Plus subscriptions.
The future trajectory for OpenAI remains uncertain, but these changes are unlikely to impact end users until the price increases are enforced. Recently, OpenAI has rolled out updates for the ChatGPT 4o-mini model and widened the availability of the chatbot’s Advanced Voice feature to a broader audience.
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