The cost of using ChatGPT may soon rise, creating a stir among its user base. According to internal documents reviewed by The New York Times, OpenAI is eyeing a price increase for its ChatGPT Plus subscription, moving from the current $20 per month to $22 by the end of this year. The price hike is expected to escalate even further, with projections indicating a leap to $44 per month by 2029.
This price adjustment is a response to mounting pressure from investors for OpenAI to address its financial losses. Despite generating impressive monthly revenues of around $300 million as of August, the company is projected to incur losses nearing $5 billion this year. The costs associated with staffing, office space, and the substantial resources required for AI training are significant contributors to this financial strain. In fact, operating ChatGPT was reportedly costing OpenAI approximately $700,000 daily at one point.
However, this strategy may come with risks. OpenAI has around 10 million paying users currently, but feedback indicates a potential backlash if prices rise too steeply. Many subscribers feel that even the existing $20-per-month fee is on the higher side. As OpenAI navigates this balancing act between financial viability and user satisfaction, the future pricing landscape for ChatGPT remains uncertain.
