A new report published by the New York Times shed light on some internal documents and how reports spoke about the company having plans to raise the pricing of individual subscriptions for the popular AI chatbot.
Right now, it stands at $20 per month but by the end of this year, it could go up to $22. It might not sound a lot right now but this is just the start. Prices are expected to further increase in the next couple of years. By 2029, the tech giant expects to charge a whopping $44 every month for its ChatGPT Plus.
This is certainly an aggressive move and goes to show the great pressure it has from investors to better profit margins and minimize loss. The news comes even though the firm’s monthly revenue rose to $300 million last month as reported by the NYT.
Still, the AI giant does anticipate more losses that could go up to $5B in 2024. Meanwhile, expenses such as office rent and staffing as well as AI training are said to be the main culprits.
There was a point in time when the firm’s AI tool cost it close to $700k a day. This means OpenAI might face a major blow if prices rise too fast. While the chatbot already has nearly 10M paying users each day, the survey from users hinted at how people feel the price is already too high. Therefore, the thought of a further increase might really rub a lot of users the wrong way. What do you think?
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by Dr. Hura Anwar via Digital Information World
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