A report from The New York Times indicates that OpenAI, the creator of ChatGPT, plans to gradually increase the price of its ChatGPT Plus subscription over the next five years, as revealed in internal documents shared with potential investors.
ChatGPT+ New Pricing
Currently, the monthly subscription fee for ChatGPT Plus is $20, providing users with access to the latest models, fewer limitations, and the DALL-E image generation feature. However, this pricing model is set to undergo changes, with a planned increase to $22 per month by the end of 2024, as demonstrated in the table below.
This pricing model could escalate to as much as $44 per month by 2029. Additionally, the report from The New York Times notes that OpenAI has about 10 million subscribers to ChatGPT Plus.
Moreover, with the iOS 18.2 update, Apple is preparing to integrate ChatGPT capabilities into Siri. These features will function independently of an OpenAI account or a ChatGPT Plus subscription, enabling users to log in directly on iOS for enhanced features.
The rationale for the anticipated price hike for ChatGPT Plus is apparent: the operational expenses of maintaining the AI service are extremely high. The report also highlights that OpenAI is “burning through piles of money” and expects to incur a loss of $5 billion in 2024.
OpenAI is currently seeking as much as $7 billion in funding, a move that would boost the company’s market capitalization to $150 billion. Although there were earlier discussions about Apple potentially participating in this funding round, it seems the tech giant has lost interest. This new $150 billion valuation represents a significant rise from $30 billion just a year ago when Microsoft began investing.
OpenAI Revenue
At present, OpenAI is generating approximately $300 million in monthly revenue and is projected to reach $3.7 billion in sales for the year. Despite this, after accounting for its expenses, the company foresees a $5 billion loss due to the substantial costs associated with AI development. OpenAI will likely need to pursue further funding to sustain its initiatives.
Of the estimated $3.7 billion in annual revenue, around $2.7 billion is expected to stem from ChatGPT subscriptions, while the remaining $1 billion will come from other technology companies employing its APIs for AI integration within their products. The company also predicts that its revenue could triple in the coming year, potentially hitting $11.6 billion. By 2029, at the $44 monthly price point, they project earning $100 billion from ChatGPT Plus subscriptions.
The future direction for OpenAI remains unclear, but these developments are unlikely to affect end users until the price hikes are implemented. Recently, OpenAI has introduced updates for the ChatGPT 4o-mini model and expanded the availability of the chatbot’s Advanced Voice feature to a wider audience.
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