OpenAI CEO unsure of how to respond to ChatGPT user behaviour

OpenAI is reportedly facing an unexpected financial challenge despite the remarkable success of its premium subscription service, ChatGPT Pro.

According to the company’s CEO Sam Altman, the costs associated with running the service have been higher than anticipated, putting a strain on OpenAI's finances.

Altman admitted that the decision to price ChatGPT Pro at $200 per month was based on intuition rather than a comprehensive study.

Taking to X (formerly Twitter), he confessed, “I personally chose the price, and I thought we’d make money but it seems that the demand for ChatGPT Pro was far higher than anticipated.”

The demand for the service has been far higher than expected, leading to intensive usage by subscribers and increased costs for OpenAI.

OpenAI is now rethinking its business model to become profitable. Despite raising around $20 billion, the company’s financial condition is concerning, with a projected deficit of $5 billion on $3.7 billion in revenue in 2024.

The high operational costs, including expenses for AI training infrastructure and daily operations, have become a significant burden.

To address these issues, OpenAI is considering restructuring, attracting new investors, and securing additional funding.

OpenAI might also raise subscription prices or implement a usage-based pricing model in the upcoming months.