OpenAI losing money for ChatGPT Pro subscriptions: Here's why

OpenAI co-founder Sam Altman recently revealed that the company is losing money despite the growing number of subscriptions to its premium service, ChatGPT Pro. In a series of tweets, Altman explained that OpenAI had underestimated the demand for the subscription plan, which is priced at $200 or Rs. 17,000 in India. While the service, aimed at professionals, businesses, and students, offers powerful tools for creative tasks, its popularity has led to unforeseen financial strain on the company. 

insane thing: we are currently losing money on openai pro subscriptions!

people use it much more than we expected.

— Sam Altman (@sama)

insane thing: we are currently losing money on openai pro subscriptions!

people use it much more than we expected.

— Sam Altman (@sama) January 6, 2025

">January 6, 2025

Altman admitted that he personally set the price for ChatGPT Pro, expecting the subscription model to generate revenue. However, he was surprised by the sheer volume of users who subscribed, using the service far more than anticipated. “We are currently losing money on OpenAI Pro subscriptions!” he said on X, highlighting that the higher-than-expected usage has contributed to increased operational costs.

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The core issue lies in the computing costs required to maintain and enhance the premium features of ChatGPT Pro. These costs have outpaced the revenue generated from subscriptions, leading to a financial shortfall. Despite the growing user base, OpenAI is still struggling to cover the hefty expenses associated with delivering a high-quality service.

This revelation underscores the significant challenges tech companies face in balancing service demand and operational costs, even when offering a premium, high-demand product.