OpenAI is losing money because its top tier subscribers are using its products way more than the company expected, the firm's CEO Sam Altman said on Monday.
Altman said the company is going into losses over its $200-per-month ChatGPT Pro.
"I personally chose the price… and thought we would make some money," he said in a series of posts on X.
Subscription to ChatGPT Pro, launched late last year, grants access to an upgraded version of OpenAI's o1 AI model, o1 pro mode, as well as its Sora video generator.
Besides the usual costs like staffing and office space, OpenAI spends a large chunk of its money on maintaining servers and training the large language models which fuel its products.
The company which has raised $20 billion since its founding is yet to become profitable and has been in the middle of a restructuring process to raise more funding.
OpenAI reportedly expected losses of about $5 billion on revenue of $3.7 billion last year, reported TechCrunch.
Its bid to become a for-profit firm has been challenged in a court by X owner Elon Musk, one of OpenAI's early founders.
The billionaire's bid for injunction has found a supporter in computer scientist Geoffrey Hinton, hailed as the godfather of AI.
"OpenAI was founded as an explicitly safety-focused non-profit and made a variety of safety related promises in its charter. It received numerous tax and other benefits from its non-profit status. Allowing it to tear all of that up when it becomes inconvenient sends a very bad message to other actors in the ecosystem," the Nobel Prize winner said in the brief supporting the injunction to block OpenAI's for-profit conversion
The firm recently admitted it needed "more capital than it imagined" as it gallops towards new frontiers in AI.
Image Source: Unsplash
Comentarios