ChatGPT Plus Subscription Price Set to Increase: Details
OpenAI's AI chatbot ChatGPT is set to become more expensive for its paid ChatGPT Plus subscribers as the company plans to increase the subscription price. A recent report suggests the monthly subscription will rise by $2 by the end of 2024, translating to approximately ₹167 in India. This increase is just the beginning, with the cost expected to climb to $44 (around ₹3,685) per month over the next five years. The planned price hike aims to meet OpenAI's revenue goals and help manage the high operational costs of running its sophisticated AI systems.
ChatGPT Plus was initially launched in February 2023 at $20 monthly (around ₹1,650). According to The New York Times, financial documents indicate that OpenAI plans to implement the price increase gradually, reaching $44 by the end of 2029. This is a significant jump from the current price of $20, or ₹1,950 in India, highlighting OpenAI's drive to increase its revenue amid growing expenses related to operating its advanced AI services.
The anticipated price hike could boost OpenAI's annual revenue to comparable levels of major corporations like Reliance Industries and Nestlé. With around 10 million subscribers to its ChatGPT Plus service, the financial potential of this price adjustment is substantial. The report also noted that OpenAI is generating "billions" in revenue from ChatGPT, and the company expects these figures to grow significantly in the coming years. OpenAI is also closing a new funding round to accelerate its growth and expand its operations, further cementing its place in the competitive AI industry.
The planned price increase is a strategic move by OpenAI to optimize revenue while coping with rising operational costs. Running AI services like ChatGPT involves considerable expenses, including maintaining data centres, computing power, and the necessary infrastructure. This approach reflects OpenAI's efforts to balance its financial growth with the challenges of scaling up its services to meet growing demand.
Despite the substantial revenue projections, OpenAI faces challenges in controlling its operational costs. The company is projected to incur losses of about $5 billion (around ₹41,800 crores) this year. A significant part of these expenses stems from the high costs of running its AI-driven services. In addition to technology costs, employee salaries and office rentals contribute to OpenAI's financial burden as it continues to expand its operations.
In parallel with these financial developments, OpenAI experienced a security breach in late September. On September 23, one of its official accounts on X (formerly known as Twitter) was compromised. According to a Bloomberg report, the @OpenAINewsroom account was hacked, and misleading messages were posted. These messages encouraged users to click links to a fraudulent cryptocurrency token falsely associated with OpenAI.
OpenAI's decision to increase ChatGPT Plus subscription prices reflects its ambition to drive financial growth while managing expenses. As the company continues to expand and face new challenges, these price changes will be crucial in helping it maintain and enhance its AI services, ensuring a sustainable future in the rapidly evolving AI landscape.