OpenAI CEO Sam Altman has revealed that the company is currently losing money due to higher-than-expected usage of its $200-a-month ChatGPT Pro plan.
“I set the price myself and thought we would make some revenue with it,” Altman said in a post on the X platform.
Launched late last year, the ChatGPT Pro plan provides access to an improved version of OpenAI’s o1 “logic” model, o1 pro mode, and other tools, including the Sora video generator, which removes speed limits.
However, OpenAI is still not making any money. Despite raising nearly $20 billion since its founding, the company expected to lose about $5 billion last year on revenue of $3.7 billion.
The main reasons for the loss include staff salaries, office rent, and infrastructure costs for training the AI. ChatGPT was reportedly once costing OpenAI about $700,000 per day.
Recently, OpenAI admitted that it was preparing to implement corporate restructuring plans in order to attract new investment and needed more capital than it had expected. The company is considering increasing the price of various subscription plans to generate revenue.
OpenAI aims to reach $100 billion in annual revenue by 2029, a figure that would be equivalent to Nestlé’s current annual sales.
