OpenAI’s CEO, Sam Altman, recently admitted that the company is losing money on its $200-per-month ChatGPT Pro plan. According to Altman, the Pro plan users are pushing the system beyond expectations, leading to financial strain. Based on a report from TechRadar, Altman acknowledged that OpenAI might need to raise the price of this service to offset the losses.

The question on many users’ minds is whether this price increase will affect the more affordable ChatGPT Plus, which costs $20 a month. If prices for ChatGPT Pro rise, it could lead to a similar increase in ChatGPT Plus. As reported by TechRadar, many users who have subscribed to ChatGPT Plus since its launch have enjoyed its benefits, such as faster responses and access to new features like the Sora AI video creator.

For casual users, the current $20 per month fee seems like a good deal. However, a price increase might cause users to reconsider if the service is still worth it. The introduction of more expensive options like ChatGPT Pro, with benefits such as unlimited access to Sora and higher API rate limits, appeals to heavy users, including developers and content creators.

TechRadar also highlighted that if OpenAI raises the prices of its premium services, users could explore alternatives. Companies like Google Gemini are enhancing their AI offerings, often bundled with other services. These improvements from competitors could make it easier for users to switch to other platforms.

As OpenAI continues to raise funds and expects to generate $11.6 billion in revenue in 2025, it remains to be seen whether price hikes are the solution to its financial struggles. The company faces the challenge of balancing user costs with the sustainability of its services.

OpenAI’s pricing strategy will play a significant role in determining whether users remain loyal or shift to other AI tools.

SOURCE: TECHRADAR | PHOTO: INDIANEXPRESS