OpenAI CEO Admits ChatGPT Pro is Losing Money Hinting a Price Hike

OpenAI CEO Sam Altman revealed that the company is losing money on its $200-per-month ChatGPT Pro plan due to higher-than-expected usage. “I personally chose the price,” Altman wrote in a series of posts on X, adding, “and thought we would make some money.”

ChatGPT Pro Usage Surpasses Expectations

Launched late last year, ChatGPT Pro offers users access to OpenAI’s advanced o1 “reasoning” AI model, o1 Pro mode, and lifts rate limits on other tools like the Sora video generator. Despite these offerings, the plan’s pricing has proven insufficient to cover the unexpectedly high usage.

Financial Challenges

OpenAI, despite raising nearly $20 billion (according to Crunchbase) since its founding, has yet to achieve profitability. The company reportedly projected losses of $5 billion (according to CNBC.com) against revenue of $3.7 billion in 2024, due in part to high expenditures on staffing, office rent, and expensive AI training infrastructure. At one point, ChatGPT alone was costing OpenAI an estimated $700,000 per day (according to ycombinator.com) to operate.

Recently, OpenAI acknowledged its need for more capital and is planning a corporate restructuring to attract fresh investments. As part of this effort, the company is considering increasing the prices of its subscription plans to offset losses and move toward profitability.

Optimistic Revenue Goals for the Future

While OpenAI faces immediate financial hurdles, it remains optimistic about long-term growth. The company projects its revenue could hit $100 billion by 2029—comparable to the annual sales of multinational corporations like Nestlé.

However, achieving this ambitious goal will require strategic adjustments, including potentially rethinking its subscription pricing and operational costs.

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