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OpenAI is Losing Money on Its Expensive ChatGPT Pro Plan, CEO Sam Altman Reveals
In a recent statement, OpenAI CEO Sam Altman has disclosed that the company is currently hemorrhaging cash due to its pricey ChatGPT Pro plan. The $200-per-month subscription service, launched towards the end of last year, was expected to generate revenue for the AI giant. However, in an unexpected turn of events, it appears that users have been embracing the upgraded version of OpenAI’s “reasoning” AI model, o1 pro mode, and other exclusive tools at a rate that has left the company reeling.
“I personally chose the price,” Altman candidly stated on X, implying that he had initially anticipated making some profit from the plan. The surprising surge in demand has led to a significant loss for OpenAI, which has already received around $20 billion in funding since its inception. Despite this influx of capital, the company is still not profitable, largely due to substantial expenditures such as staffing, office rent, and AI training infrastructure.
Source: techcrunch.com
