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It Costs So Much to Run ChatGPT That OpenAI Is Losing Money on $200 ChatGPT Pro Subscriptions

Jan 07, 2025 - futurism.com
OpenAI is facing significant financial challenges despite its efforts to become profitable. CEO Sam Altman revealed that the company is losing money on its $200-per-month ChatGPT Pro subscriptions due to the unexpectedly high usage and the substantial costs associated with running AI infrastructure. The expenses include the electricity needed to power AI facilities and the maintenance of data centers, with a single query on advanced models costing up to $1,000. This highlights a broader issue in the AI industry: as AI systems become more advanced, they become increasingly expensive to operate, complicating efforts to achieve profitability.

With approximately 10 million paying subscribers, OpenAI is still incurring significant losses, projected to reach $5 billion in 2024 against $3.7 billion in revenue. Despite securing $6.6 billion in funding, the company acknowledges the need for more capital and is considering raising subscription prices. However, such increases may not suffice to meet the growing energy demands and operational costs. The situation underscores the financial hurdles faced by AI companies as they balance innovation with sustainable business models.

Key takeaways:

  • OpenAI is losing money on ChatGPT Pro subscriptions despite their high cost, due to unexpected high usage and operational expenses.
  • The cost of running AI infrastructure is extremely high, with estimates suggesting OpenAI spends around $700,000 per day on ChatGPT operations.
  • OpenAI is projected to lose $5 billion in 2024, despite generating $3.7 billion in revenue and securing $6.6 billion in funding.
  • There are considerations to raise ChatGPT subscription prices, but it's unclear if this will cover the increasing energy and operational costs.
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