ChatGPT subscription costs could potentially double in the coming years

OpenAI is set to gradually raise the price of its ChatGPT Plus subscription, which currently stands at $20 per month. Internal documents circulated among potential investors indicate that the monthly fee will increase to $22 by the end of this year and could reach as high as $44 over the next five years. This announcement has stirred discussions regarding the future pricing structure of ChatGPT and its implications for users.

Currently, the ChatGPT Plus subscription provides access to enhanced models, reduced limitations, and integration with DALL-E, OpenAI’s image generation tool. With 10 million subscribers, OpenAI has established a significant user base. However, the price hike may lead some subscribers to reconsider their commitment to the service.

The documents outlining these price changes also reveal that Apple is planning to incorporate ChatGPT functionality within Siri in iOS 18.2. Users will not need a ChatGPT Plus subscription or an OpenAI account to access these features, but signing in will offer additional capabilities. This integration signals a growing trend of major tech companies incorporating AI functionalities into their services.

OpenAI is in the process of raising up to $7 billion, with a current valuation estimated at $150 billion—up from $30 billion just a year ago. This increase in valuation follows Microsoft’s investment in the company. Despite generating $300 million in monthly revenue and expecting total annual revenue to reach $3.7 billion, OpenAI anticipates a loss of $5 billion this year due to its high operational costs.

In a remarkable forecast, OpenAI aims to triple its revenue next year to $11.6 billion, with long-term projections estimating $100 billion by 2029, coinciding with the completion of the ChatGPT Plus price increase to $44 per month.

Additionally, CEO Sam Altman is expected to receive equity in the company for the first time, potentially valuing his stake at $10.5 billion. This development follows a tumultuous period for Altman, who was previously ousted by the board, leading to employee protests and his eventual reinstatement. Nonetheless, the recent changes in leadership, particularly the exit of prominent executives, bring uncertainty regarding the company’s future trajectory.

OpenAI’s pricing strategy and executive shifts indicate that while the company is on an aggressive growth trajectory, it faces challenges in maintaining stability amid rapid changes in the tech landscape.