OpenAI CEO Sam Altman revealed in a series of posts on the social media platform, X, that the company is losing money on its $200-per-month ChatGPT Pro plan due to unexpectedly high usage. Altman, who set the pricing himself, admitted that he initially expected the plan to generate profits. OpenAI launched ChatGPT Pro last year and offers enhanced access to the AI company’s advanced AI tools, including its o1 reasoning model and the Sora video generator, with fewer limits on their usage.
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OpenAI Continues to Run into Losses Despite a Capital Raise
Despite raising around $20 billion since its inception, OpenAI remains unprofitable. In fact, in FY24, OpenAI has projected losses of $5 billion on revenues of $3.7 billion. According to a TechCrunch report, high operating costs, such as staffing, office expenses, and AI training infrastructure, have weighed heavily on the company. According to the report, at one time, ChatGPT reportedly cost $700,000 daily to operate.
In response to these challenges, OpenAI is considering raising subscription prices and corporate restructuring to attract more investors. The company aims to reach $100 billion in revenue by 2029.
OpenAI Is Turning to Superintelligence
Meanwhile, OpenAI is increasingly focused on developing superintelligence. OpenAI defines superintelligence as “highly autonomous systems that outperform humans at most economically valuable work.” Altman stated in a post on his personal blog, “Superintelligent tools could massively accelerate scientific discovery and innovation well beyond what we are capable of doing on our own, and in turn massively increase abundance and prosperity.”
Altman’s AI vision also extends to AI agents that could significantly boost productivity. However, he acknowledges the technology’s current limitations, including frequent errors and high costs.
Interestingly, according to an Information report, OpenAI and Microsoft (MSFT), the startup’s key investor and collaborator, signed an agreement in 2023 that states that OpenAI will have achieved artificial general intelligence (AGI) only when it develops AI systems that can help the company generate $100 billion in profits.
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