OpenAI's CFO reveals strategies for boosting revenue
Sarah Friar mentions 'licensing models' as new revenue strategy to offset rising compute expenses
OpenAI's financial leader is exploring alternative revenue strategies beyond ChatGPT subscriptions.
On a recent The OpenAI Podcast episode aired Monday, Sarah Friar proposed the concept of "licensing models," allowing the company to earn from downstream sales when a customer's product becomes successful.
"Let's say in drug discovery, if we licensed our technology, you have a breakthrough. The drug takes off, and we get a licensed portion of all its sales," Friar explained.
"It's great alignment for us with our customer," she further state.
Friar’s statements provide insight into how OpenAI contemplates sustaining its compute-intensive plans as it modifies its business approach.
According to Friar, OpenAI originally launched with a single pricing plan for ChatGPT but now offers various options including SaaS-style enterprise and credit-based pricing for those who "prefer to pay more to receive more."
As OpenAI considers avenues like sales and advertisements, Friar stressed that the model should aim to provide the best answer, not just a paid-for one, while also keeping a no-ad tier available.
Recently, OpenAI announced its plan to experiment with ads in ChatGPT in an effort to increase revenue amidst long-term commitments approaching $1.4 trillion.
This represents a shift from the company's previous standpoint. Less than two years prior, OpenAI's CEO Sam Altman referred to advertising as an "option of last resort."
Since then, Altman's viewpoint has adapted along with OpenAI's growth and increasing compute costs.
