ChatGPT Subscription Prices Set to Soar
In a move that is likely to affect millions of users worldwide, OpenAI, the artificial intelligence (AI) chatbot’s parent company, is planning to increase the subscription price for ChatGPT Plus users. According to a recent report, the AI firm is set to raise the monthly subscription cost by $2 (roughly Rs. 167) by the end of 2024, and could potentially reach as high as $44 (roughly Rs. 3,685) by the end of 2029.
The reason behind this price hike is reportedly OpenAI’s ambition to boost its revenue, which is expected to reach $100 billion (roughly Rs. 8.3 lakh crore) in 2029. The majority of this revenue is expected to come from subscription-based services. Currently, OpenAI has around 10 million ChatGPT Plus users, and the company is aiming to increase this number significantly in the coming years.
The documents reviewed by The New York Times highlighted that OpenAI is currently making "billions" from ChatGPT, and expects to continue boosting its numbers in the future. The company is also in the process of closing a funding round. However, despite the big numbers projected in its revenue estimation, OpenAI is reportedly struggling to optimize its operational costs. The company is said to lose around $5 billion (roughly Rs. 41.8 thousand crore) this year, with most of this loss going towards its AI-powered services.
Other significant cost-centres for OpenAI include employee salaries and office rent. Additionally, the company is reported to spend a significant amount on cloud computing, which is used to run its services. Despite receiving $13 billion (roughly Rs. 1.08 lakh crore) yearly due to its partnership with Microsoft, OpenAI reportedly spends a large portion of this money on running cloud processing.
As the price hike is set to take effect, it remains to be seen how users will respond to the increased costs. With OpenAI’s ambition to become a major player in the tech industry, it will be interesting to see how the company continues to adapt to the ever-changing landscape of AI-powered services.
