Sam Altman, the CEO of OpenAI, has disclosed that the company is incurring losses on its recently introduced ChatGPT Pro product, despite its ambitious pricing and enhanced features.
The subscription-based product, launched in late 2024 at a rate of $200 per month, grants users access to the upgraded o1 Pro model and removes usage limits across OpenAI’s tools.
However, Altman revealed in a post on his X (formerly Twitter) account that usage patterns have exceeded expectations, making the plan less profitable than anticipated.
“Insane thing: we are currently losing money on OpenAI Pro subscriptions! People use it much more than we expected,” Altman wrote.
When asked about the pricing strategy, the CEO admitted that the initial plan was designed with profitability in mind. “I personally chose the price and thought we would make some money,” he added.
OpenAI, which boasts a valuation of over $80 billion, reported significant financial losses in 2024. While the company achieved revenues of $3.7 billion, its expenses outpaced earnings, leading to a $5 billion loss for the year.
