OpenAI is reportedly planning to raise the price of its ChatGPT Plus subscription service, with a $2 increase expected by the end of 2024. This change would raise the monthly fee from the current $20 (approximately ₹1,950) to $22. Additionally, projections suggest that by 2029, the subscription cost could soar to $44 (about ₹3,685) as the company pursues ambitious revenue targets.
OpenAI Revenue Goals and Growth Projections
According to a report from The New York Times, OpenAI’s rationale for the price hike is primarily focused on increasing revenue, with a goal of reaching $100 billion by 2029. Achieving this target would position OpenAI’s potential annual earnings alongside established corporations such as Reliance Industries and Nestlé. Currently, the company has around 10 million subscribers to its Plus service.
Financial Performance and Challenges
Financial documents reviewed by the publication, intended for investors, indicate that OpenAI is already generating “billions” from ChatGPT subscriptions. In addition, it expects significant growth in the upcoming years. However, the company is grappling with operational costs, forecasting losses of approximately $5 billion for the current year. These financial burdens are largely due to expenses related to AI service operations, employee salaries, and office leases.
OpenAI Cloud Computing Costs
Cloud computing services provided by Microsoft account for a substantial portion of OpenAI’s expenses. The partnership yields about $13 billion annually. However, the company uses much of this funding to cover cloud processing costs.
Strategic Shift Towards Revenue Maximization
As OpenAI navigates its financial landscape, the proposed price increases reflect a strategic pivot aimed at maximizing revenue. However, it will manage operational expenditures effectively.
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OpenAI Security Breach on Social Media
In a separate incident, on September 23, OpenAI announced that one of its official accounts on the social media platform X (formerly Twitter) had been “compromised” by an unauthorized individual. Someone hacked the @OpenAINewsroom account posting messages on the account. In addition, it prompted users to click on links to a cryptocurrency token falsely associated with the startup.
