OpenAI ChatGPT Pro is currently operating at a loss, according to OpenAI CEO Sam Altman. Despite its popularity and premium $200-per-month subscription plan, the service’s unexpectedly high demand has outpaced revenue. Altman revealed this in a post on X, formerly Twitter, sparking widespread discussion about the sustainability of the service.
Launched in late 2023, OpenAI ChatGPT Pro offers exclusive features, including the upgraded “o1 Pro” AI model and unrestricted access to tools like Sora, OpenAI’s text-to-video generator. However, Altman admitted, “We are currently losing money on OpenAI Pro subscriptions. People use it much more than we expected.”
Why OpenAI ChatGPT Pro is Struggling Financially
Despite raising around $20 billion since its inception, OpenAI is yet to achieve profitability. Key expenses, such as staffing, office rent, and the operational costs of running advanced AI systems, have placed a significant strain on the company. Reports estimate that running ChatGPT costs OpenAI approximately $700,000 daily.
Altman has hinted at potential price increases for the OpenAI ChatGPT Pro plan, suggesting that adjustments are necessary to align revenue with operating costs.
OpenAI’s Path to Profitability
OpenAI is exploring various strategies to achieve profitability, including restructuring and attracting new investments. With over 300 million active users globally, Altman remains optimistic about the platform’s growth potential.
In a blog post, he stated, “We grew from about 100 million weekly active users to more than 300 million. Most of all, we have continued to put technology out into the world that people genuinely seem to love.”
This growth trajectory, however, is accompanied by challenges. Altman acknowledges that OpenAI’s journey requires more capital than initially envisioned.
Competition and Legal Challenges
The success of OpenAI ChatGPT Pro has also drawn criticism and competition. Notably, Elon Musk, a co-founder of OpenAI, has accused the company of deviating from its nonprofit mission. Musk’s legal actions and promotion of his AI company, xAI, highlight the competitive and contentious landscape of the AI industry.
The future of OpenAI ChatGPT Pro remains uncertain as the company navigates financial challenges, increasing competition, and the need for further innovation. However, with a strong user base and a commitment to technological advancement, OpenAI is poised to redefine AI-driven solutions.
