OpenAI's CEO Sam Altman disclosed that the company is losing money on its professional-level subscriptions, which cost $200 per month. This comes despite OpenAI's impressive growth, with 300 million active users and $20 billion in funding. The ChatGPT Pro service, launched in December, was expected to be profitable, but users exceed projections, leading to financial losses. Altman previously admitted that OpenAI initially lacked a clear business model, and the decision to go with subscriptions was born out of trial and error in finding viable revenue streams.
It's clear that AI developers are still trying to unpick how much to charge customers - and it's a difficult balancing act as businesses remain unclear about return on investment for AI projects.
CEO Sam Altman revealed the company was losing money on professional subscriptions despite them costing $200 a month, as usage exceeded their expectations.
When asked if it was part of the plan to make the service look good, Altman disagreed, stating, 'No, I personally chose the price and thought we would make some money.'
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