OpenAI CEO Sam Altman revealed that ChatGPT Pro is losing money despite its $200 monthly subscription fee, which is ten times higher than the Plus tier. Altman admitted on social media that…
OpenAI CEO Sam Altman revealed that ChatGPT Pro is losing money despite its $200 monthly subscription fee, which is ten times higher than the Plus tier. Altman admitted on social media that the service's unexpectedly high usage levels are causing profitability issues, particularly with its o1 pro model.
The article suggests that the problem may stem from the model's chain of thought (CoT) approach, which generates more tokens and requires longer processing times than traditional models, resulting in higher operational costs. This financial challenge comes just weeks after OpenAI announced plans to restructure as a public benefit corporation to attract larger investments, and following a significant funding round of $6.6 billion in October.