OpenAI CEO Sam Altman:
OpenAI CEO Sam Altman revealed on Sunday that the company is currently losing money on its $200-per-month ChatGPT Pro plan due to higher-than-expected usage. Altman, who personally set the price for the plan, stated in a series of posts on X that he had anticipated the company would make a profit but instead has encountered significant losses.
The ChatGPT Pro plan, launched in late 2024, provides users with access to an upgraded version of OpenAI’s advanced “reasoning” AI model, o1 Pro mode. It also removes rate limits on several other tools, including the Sora video generator. Despite the plan’s high cost, its popularity has led to a greater financial burden than OpenAI initially projected.
Despite raising around $20 billion since its founding, OpenAI has yet to achieve profitability. The company had forecasted losses of approximately $5 billion against revenues of $3.7 billion last year. This shortfall is largely attributed to ongoing expenses such as staffing, office rent, and the infrastructure required for AI training. At one point, the costs associated with ChatGPT were estimated at $700,000 per day.
In light of these challenges, OpenAI has acknowledged that it needs “more capital than it imagined” and is preparing for a corporate restructuring aimed at attracting new investments. As part of its efforts to reach profitability, the company is reportedly considering raising the prices of its subscription tiers. Looking to the future, OpenAI is optimistic about its growth, projecting that its revenue could hit $100 billion by 2029, which would align with the annual sales of companies like Nestlé.
While the road to profitability is not without its hurdles, OpenAI is pushing forward with plans to adjust its business strategy and continue its ambitious growth trajectory.
