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Monday, 06 January 2025 16:30

We’re losing money on ChatGPT Pro, says OpenAI CEO

Sam Altman, the chief executive officer (CEO) of OpenAI, says the company is incurring losses on its ChatGPT Pro product.

The product, introduced in late 2024 at a subscription rate of $200 per month, offers users access to the upgraded o1 Pro model and removes usage limits across other OpenAI tools.

However, in a recent post on X, Altman said the plan has been less profitable than anticipated.

“Insane thing: we are currently losing money on openai pro subscriptions! people use it much more than we expected,” he wrote.

 

Responding to comments, Alman said the pricing was designed to generate profits.

“I personally chose the price and thought we would make some money,” the CEO added.

Despite its valuation of over $80 billion, OpenAI reported a $5 billion loss in 2024 — with revenues reaching $3.7 billion.

On October 2, 2024, the company said it raised $6.6 billion in funding, attracting significant investment from firms like Thrive Capital, Khosla Ventures, Nvidia, and its largest corporate backer, Microsoft.

Since its inception in 2015, OpenAI’s journey has been marked by growth intertwined with controversy.

In November 2023, Altman was abruptly removed as CEO by OpenAI’s board for not being “candid in his communications”.

He was reinstated shortly after the board reached an agreement.

 

Also, Elon Musk, a co-founder of OpenAI who later parted ways with the organisation, has openly criticised its transition to a “for-profit model”.

In December 2024, Musk, who leads his own AI startup, xAI, filed a court injunction against OpenAI.

He claimed the company’s shift betrayed its nonprofit roots, straying from its original mission and creating unfair competition for rivals like xAI.

[TheCable]


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