OpenAI CEO Confesses ChatGPT Pro Pricing Fails Amid User Surge

OpenAI CEO Sam Altman says the $200-a-month ChatGPT Pro plan is losing money because of higher-than-expected demand. He says he was wrong about pricing and usage.

On Sunday, OpenAI CEO Sam Altman said that the company is losing money on its $200-a-month ChatGPT Pro plan because more people are using it than they thought they would.

In several posts on X, Altman said, “I chose the price myself and thought we would make some money.” When ChatGPT Pro came out at the end of last year, it gave users access to o1 pro mode, an improved version of OpenAI’s o1 “reasoning” AI model. It accelerated other company tools like the Sora video generator.

OpenAI has raised about $20 billion since it began, but it isn’t making any money. The company reportedly thought it would lose about $5 billion last year, even though it made $3.7 billion.

High Costs of Running ChatGPT

Some of the costs to blame include staffing, office rent, and the development of AI training infrastructure. At one point, OpenAI thought ChatGPT cost them about $700,000 daily.

For its business restructure to attract investors, OpenAI said it needs “more capital than it imagined”. OpenAI is reportedly considering increasing the prices of its various subscription plans to generate revenue.

The company is optimistic that its sales will reach $100 billion in 2029, the same amount of money that Nestlé makes in a year.