OpenAI CEO Sam Altman admitted that the company is losing money on the $200-per-month ChatGPT Pro plan due to unexpectedly high usage."I personally chose the price," Altman wrote in a series of posts on X, "and thought we would make some money." This indicates that the initial pricing strategy did not align with the actual demand and usage patterns.
Despite raising around $20 billion since its founding, OpenAI isn't profitable, expecting $5 billion in losses on $3.7 billion in revenue last year. High expenditures like staffing and AI training infrastructure contribute to these losses, with ChatGPT reportedly costing OpenAI $700,000 a day. The company has expressed a need for 'more capital than it imagined' while preparing for corporate restructuring to attract new investments, indicating a challenging financial landscape.
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