OpenAI Faces Financial Struggles as ChatGPT Pro Costs Outpace Revenue

CEO Sam Altman reveals the $200-per-month subscription is losing money due to higher-than-expected usage and rising operational costs.

OpenAI's $200-per-month ChatGPT Pro plan is unprofitable, with CEO Sam Altman admitting that users are utilizing the service more than anticipated.
The company's advanced o1 model, included in the Pro plan, requires significant computational resources, driving up infrastructure and energy expenses.
OpenAI projected a $5 billion loss for 2024 despite generating $3.7 billion in revenue, highlighting the challenge of sustaining its AI operations.
To address financial pressures, OpenAI is considering restructuring into a public benefit corporation to attract larger-scale investments.
The company may explore changes to its pricing strategy, including potential rate increases or a shift to usage-based billing, though no decisions have been announced.