OpenAI CEO Sam Altman has revealed that the company is losing money on its $200-per-month ChatGPT Pro subscription due to unexpectedly high demand. In a post on X, formerly Twitter, Altman explained that while the service has been popular, the operational costs have surpassed the revenue.
“Insane thing: we are currently losing money on OpenAI Pro subscriptions! People use it much more than we expected,” Altman said. He also suggested that the current pricing may need to be adjusted to help cover the costs, adding, “I personally chose the price and thought we would make some money.”
The Pro plan, which launched in late 2023, provides users with access to the advanced “o1 Pro” model and removes rate limits on tools like the Sora video generator. Despite raising around $20 billion since its launch, OpenAI has struggled to become profitable, with reports indicating a $5 billion loss in 2023 against $3.7 billion in revenue.
Running the platform, including ChatGPT, has proven expensive, costing the company an estimated $700,000 per day. OpenAI is exploring options to address these financial challenges, including potential price increases and restructuring to attract more investment.
Altman reflected on OpenAI’s rapid growth, noting that active users have surged from 100 million to over 300 million in just two years. He acknowledged the challenges posed by competition but says the company is prepared to adapt to new demands and developments in the industry.
The company has also faced legal challenges from Elon Musk, one of its co-founders. Musk, who now runs his own AI company, xAI, has criticized OpenAI’s shift to a for-profit model and recently sought a court injunction to stop the transition, accusing the company of straying from its original mission.
