OpenAI co-founder Sam Altman has made a big revelation about one of its key products — ChatGPT Pro. Altman, in a series of tweets,revealed that OpenAI is losing money due to ChatGPT Pro, a subscription-based service accessible only to paid users. So if more people are subscribing to the plan, how is the company losing money? Well it is not as simple as it looks. Let us explain how.
Why is OpenAI losing money?
Altman said in a tweet that the company is losing money because many users have subscribed to the ChatGPT Pro service far more than it was expected. In a tweet, he said, “Insane thing: we are currently losing money on OpenAI Pro subscriptions! People use it much more than we expected.”
The subscription plan is priced at $200, approximately Rs. 17,000 in India. It is designed for professionals, businesses, and students who need powerful creative tools to complete their assignments. Altman in a tweet also confirmed that he had set the price of the plan himself. “I personally chose the price and thought we would make some money”, he said.
Now, if you’re wondering how having more subscribers for an expensive plan could lead to losses — the answer lies in the cost of providing the service. To deliver the premium features of ChatGPT Pro, OpenAI will have to spend a lot of money on the computing costs, which is definitely more than the revenue it is generating from the subscription plan.
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