ChatGPT, OpenAI’s artificial intelligence (AI) chatbot is reportedly going to get more expensive for paid subscribers. According to a new report, the AI company plans to increase the subscription price for ChatGPT Plus users by $2 (roughly Rs. 167) per month. The price hike is not expected to stop there, as the company will increase the monthly subscription price to $44 (roughly Rs. 3,685) over the next five years. OpenAI’s revenue ambitions and high cost of running operations are said to be driving the higher ticket price.
ChatGPT subscriptions will reportedly become more expensive
According to The New York Times, the AI company plans to increase the subscription price by $2 by the end of 2024. Citing financial documents reviewed by the publication, the report further adds that the final subscription price for ChatGPT Plus could be $44 per month by the end of 2029, a steep climb from the current $20 per month in the US or Rs. 1950 per month in India.
Along with the price hike, the company is reportedly looking to secure $100 billion (roughly Rs. 8.3 lakh crore) in revenue in 2029, most of which is expected to come from subscription-based services. If the AI company succeeds in achieving this goal, it would have annual revenue similar to Reliance Industries, Nestlé or Comcast. OpenAI currently has approximately 10 million ChatGPT Plus users, according to the report.
Documents reviewed by the investor publication and OpenAI reportedly noted that they are currently making “billions” from ChatGPT, and expect to increase the numbers significantly in the coming years. Namely, the company is in the process of closing the financing round.
Despite the big numbers projected in the revenue estimate, the company is reportedly struggling to optimize its operating costs. OpenAI is said to lose approximately $5 billion (roughly Rs. 41.8 lakh crore) this year, most of which goes to AI-powered services. Other significant cost items include employee salaries and office rent.
Another major source of costs is reportedly cloud computing, for which the company uses Microsoft services. Despite getting $13 billion (roughly Rs. 1.08 lakh crore) annually from the partnership, the AI company is spending a large chunk of that money on cloud computing startups.