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According to a recent report from the *New York Times*, OpenAI may soon raise the price of its ChatGPT Plus subscription, currently set at $20 per month. The first increase, adding an extra $2, is expected before the end of 2024, with a more substantial hike projected over the next five years. By 2029, the subscription cost could rise to $44 per month. This potential increase in pricing is said to be driven by the high operational costs associated with running the AI service, as OpenAI is currently facing significant financial losses.
Despite having around 10 million paying subscribers and expected annual revenue of $3.7 billion in 2024, OpenAI is projected to lose $5 billion over the same period. The company is looking to raise around $7 billion in outside funding and aims to achieve a valuation of $150 billion. Even though the financial challenges are behind the scenes, these price increases may reflect the substantial resources required to maintain and improve the AI models.
To justify the rising subscription cost, OpenAI is likely to introduce new features and advanced AI models, similar to the recent rollout of ChatGPT’s Advanced Voice mode and improvements to the GPT-4 turbo models.