In December, OpenAI introduced a premium-tier plan for its popular AI chatbot, ChatGPT, offering subscribers unlimited access to its most advanced AI technologies. Priced at $200 (approximately N150,000) per month, the ChatGPT Pro plan promised enhanced human-like reasoning capabilities, powered by an upgraded model known as o1. OpenAI also launched a more affordable ChatGPT Plus subscription for $20 (N15,000) per month, a cost-effective option for users who didn’t require the full capabilities of the Pro plan. However, the higher-tier subscription has proven costly for OpenAI due to unexpected levels of user activity. According to OpenAI CEO Sam Altman, the company underestimated the extent to which subscribers would utilize the Pro plan. In a post shared on X (formerly Twitter), Altman admitted, “I personally chose the price and thought we would make some money.” Since its launch late last year, ChatGPT Pro subscribers have enjoyed access to the advanced o1 Pro AI model, which offers higher reasoning capabilities, as well as lifted rate limits on other OpenAI tools, such as the Sora video generator. Despite its impressive technological advancements, OpenAI has yet to achieve profitability. Although the company has raised nearly $20 billion in funding since its inception, it anticipates incurring losses of about $5 billion on projected revenue of $3.7 billion in 2024. The company’s operating costs, including staffing, infrastructure for AI training, and office expenses, have significantly strained its finances. At one point, it was estimated that maintaining ChatGPT alone cost OpenAI $700,000 daily. To address these financial challenges, OpenAI is planning a corporate restructuring to attract fresh investment. The company has acknowledged its need for more capital than initially anticipated. Looking ahead, OpenAI projects its revenue to reach $100 billion by 2029, aligning with the current annual sales of global giants like Nestlé. To achieve this goal, OpenAI may consider adjusting its subscription prices across various tiers.
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