OpenAI is reportedly set to raise the price for its ChatGPT Plus subscription service, with a $2 increase anticipated by the end of 2024. This adjustment would elevate the monthly fee from the current $20 (approximately ₹1,950) to $22. Furthermore, projections indicate that by 2029, the subscription cost could skyrocket to $44 (about ₹3,685), as the company aims to achieve ambitious revenue goals.
According to a report from The New York Times, OpenAI’s strategy for this price hike is rooted in its desire to bolster revenue, targeting an impressive $100 billion by 2029. This figure would likely place OpenAI’s potential annual earnings on par with major corporations like Reliance Industries and Nestlé. Currently, the company boasts around 10 million subscribers for its Plus service.
ChatGPT Plus subscription fee is set to increase by $2. OpenAI is looking to boost revenue as a result.
The financial documents reviewed by the publication, intended for investors, suggest that OpenAI is already generating “billions” from ChatGPT subscriptions and anticipates significant growth in the coming years. However, the company faces challenges in managing operational costs, projecting losses of approximately $5 billion for the current year. These expenses largely stem from AI service operations, employee salaries, and office leases.
A considerable portion of OpenAI’s expenses also arises from cloud computing services provided by Microsoft. Despite receiving about $13 billion annually through their partnership, much of this funding is allocated to cover the costs of cloud processing.
As OpenAI navigates its financial landscape, the proposed price increases signal a strategic shift towards maximizing revenue while balancing operational expenditures.
Meanwhile, on September 23, OpenAI, the artificial intelligence startup, announced that one of its official accounts on the social media platform X (previously Twitter) had been “compromised” by an unauthorized individual, according to a report from Bloomberg. The company revealed that its @OpenAINewsroom account was hacked, with the intruder posting messages that encouraged users to click on links to a cryptocurrency token falsely associated with the startup.