OpenAI CEO Sam Altman disclosed losses from the ChatGPT Pro subscription despite its $200 monthly cost, citing higher-than-expected user engagement. OpenAI reported a $5 billion loss in 2024 despite $3.7 billion in revenue. Meanwhile, Elon Musk’s legal action against OpenAI highlights ongoing controversies surrounding the company’s shift from nonprofit to for-profit.
OpenAI CEO Sam Altman has disclosed that the company is facing financial challenges with its ChatGPT Pro subscription service. Launched in late 2024 at a $200 monthly rate, the premium plan offers access to advanced AI features and removes usage restrictions across OpenAI tools. However, Altman revealed that the service has not been as profitable as anticipated.
In a recent post on X, Altman stated, “We are currently losing money on OpenAI Pro subscriptions! People use it much more than we expected.” He admitted that the pricing strategy was initially intended to drive profits but has fallen short of expectations.
Despite a valuation exceeding $80 billion, OpenAI reported a $5 billion loss in 2024, with revenue totaling $3.7 billion. To sustain its operations, the company secured $6.6 billion in funding in October 2024 from major investors, including Microsoft, Nvidia, Thrive Capital, and Khosla Ventures.
Adding to its challenges, OpenAI continues to face criticism and legal disputes. Co-founder Elon Musk, now leading rival AI firm xAI, has filed a lawsuit, accusing OpenAI of abandoning its nonprofit mission and creating unfair competition. These developments highlight the ongoing complexities in OpenAI's journey from innovation to profitability.
