Pricing is the alpha and the omega. OpenAI would be getting some very interesting questions today about its cost metrics and margins if it was a public company.
Igor Finkelshtein
igor-finkelshtein
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replied to
MoritzLaurer's
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5 days ago
OpenAI is losing money on the $200/month subscription π€―. It's crazy how expensive it is to run these largest LLMs:
- ChatGPT Pro costs $200/month ($2,400/year) and is still unprofitable for OpenAI due to higher-than-expected usage.
- OpenAI reportedly expected losses of about $5 billion on revenue of $3.7 billion last year, with ChatGPT alone once costing an estimated $700,000 per day to operate. πΈπ₯
- They build strong models and do great research. Whether this business model will work in the long run is one of the biggest questions in the AI economy today.
Source with the numbers π
https://techcrunch.com/2025/01/05/openai-is-losing-money-on-its-pricey-chatgpt-pro-plan-ceo-sam-altman-says/
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