According to reports, ChatGPT, OpenAI’s AI chatbot, will cost extra for users of its premium ChatGPT Plus plan. A recent report claims that the corporation intends to raise the monthly subscription fee by $2, or about Rs 167 in India.
OpenAI, however, is predicted to increase the subscription fee to $44 (about Rs 3,685) over the following five years, so this price increase won’t end there. OpenAI’s revenue targets and the expensive operating costs of running its advanced AI systems—which demand substantial resources to run effectively—are the driving forces behind these expected hikes. A $20 monthly (about Rs 1,650) ChatGPT Plus membership was introduced by OpenAI in February.
The AI company plans to raise fees by the end of 2024, according to a report that was published in The New York Times. The cost of a ChatGPT Plus subscription is anticipated to increase to $44 per month by the end of 2029, per financial papers quoted in the story.
Compared to the existing pricing, which is $20 per month in the US or ₹1,950 per month in India, this is a huge increase. The impending price increase demonstrates OpenAI’s drive for increased income as it deals with the growing expenses of maintaining the sophisticated AI systems that underpin ChatGPT.
With this anticipated price hike, OpenAI’s yearly revenue might rise to levels that are on par with those of significant companies like Nestlé and Reliance Industries. With over 10 million users of its ChatGPT Plus service at the moment, OpenAI stands to gain significantly financially from the price increase. The magazine studied the investor-focused documents, which purportedly show that OpenAI is currently making “billions” of dollars via ChatGPT.
In the upcoming years, the corporation anticipates a major increase in these figures. In addition, OpenAI is closing a fresh investment round with the goal of accelerating its operations and expansion even further. This action is indicative of OpenAI’s goals to increase its revenue and strengthen its standing in the AI sector.
With its financial tactics, OpenAI is planning price hikes that are a calculated move to maximize revenue while controlling rising operating expenses. This strategy highlights the company’s attempts to strike a balance between profitability and the difficulties of growing its AI services.
Even with the high revenue expectations, OpenAI is apparently having trouble keeping its operating expenses as low as possible. This year, the corporation is predicted to lose almost $5 billion (about Rs 41.8 thousand crore).
The substantial amount of these charges might be ascribed to the high operating costs of its AI-powered services. The company’s financial burden increases when it expands its operations due to additional significant expenses such as office leasing charges and employee wages.
Separately, OpenAI revealed on September 23 that one of their official X (previously known as Twitter) accounts had been hacked. A Bloomberg report claims that the @OpenAINewsroom account was compromised, and the hacker uploaded false posts enticing people to click on links pertaining to a bogus cryptocurrency token that was erroneously associated with the business.
