OpenAI is reportedly planning to raise the price of its ChatGPT Plus subscription from the current $20 per month to $22 by the end of this year, with further increases leading to a $44 monthly fee by 2029.
This price hike comes as the company faces pressure to reduce its financial losses, despite reaching significant monthly revenue milestones. With losses projected at $5 billion for the year, OpenAI is grappling with hefty expenses, including staffing and AI training infrastructure costs.
The price increase could lead to backlash, as some users already feel the current subscription price is too high.
Key Points:
According to internal OpenAI documents cited by The New York Times, OpenAI is reportedly planning to raise the price of individual ChatGPT subscriptions, though OpenAI has not yet confirmed this information.
If these reports turn out to be accurate, the price hike could be a response to OpenAI’s need to reduce its growing financial losses.
However, such an increase might also risk pushing away its user base.
With some users already balking at the $20-per-month fee, further price hikes could lead to decreased subscriptions, especially if competitors enter the market with more affordable alternatives.
Balancing profitability with user retention will be critical for OpenAI as it navigates these changes over the next few years.
Source: https://techcrunch.com/2024/09/27/openai-might-raise-the-price-of-chatgpt-to-22-by-2025-44-by-2029/
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