OpenAI Plans Steep ChatGPT Price Hikes to Offset Billions in Losses
OpenAI intends to raise ChatGPT Plus from $20 to $22 per month by late 2024, eventually reaching $44 by 2029. These aggressive increases aim to narrow massive financial losses driven by expensive AI training and operational costs.
OpenAI plans to increase the cost of its ChatGPT Plus subscription from $20 to $22 per month by the end of 2024. According to internal documents seen by the New York Times, the company expects to implement a much steeper hike over the next five years, ultimately charging users $44 per month by 2029. These aggressive pricing changes reflect mounting pressure from investors who want the company to narrow its substantial financial deficits.
Despite generating roughly $300 million in monthly revenue as of August, OpenAI projects a total loss of about $5 billion for the year. The company attributes these massive losses to hefty expenditures, including staffing, office rent, and the enormous computational costs required for AI training infrastructure. At one point, running ChatGPT reportedly costs OpenAI around $700,000 per day.
The company risks significant user blowback if it pushes these price increases too quickly. While ChatGPT currently boasts approximately 10 million paying subscribers, various surveys indicate that many users already consider the current $20 monthly fee to be too expensive. As OpenAI moves forward with its planned hikes, retaining this massive user base will likely pose a major challenge.