ChatGPT Plus Could Cost $44 a Month by 2029, Says Report

Key Takeaways

ChatGPT's subscription price may rise from $20 to $22 by the end of this year and could reach $44 by 2029.

OpenAI's monthly revenue skyrocketed to $300 million in August, a staggering 1,700% increase since early 2023.

Despite this growth, OpenAI expects to lose about $5 billion this year and feels pressure from investors to reduce costs.

According to recent reports, ChatGPT's subscription fees could increase from $20 to $22 per month by the end of this year, with predictions suggesting they might reach $44 by 2029.

OpenAI is experiencing remarkable growth. In August, the company’s monthly revenue jumped to $300 million, a 1,700% rise since the beginning of 2023. This surge in revenue comes as the number of monthly users grew from about 100 million in March to around 350 million in June.

Much of this growth is linked to ChatGPT, which launched in November 2022. The revenue spike was especially noticeable when users were allowed to access the service without needing an account. OpenAI projects that ChatGPT will generate $2.7 billion this year, up from $700 million in 2023, alongside another billion from businesses using its technology.

Currently, about 10 million users subscribe to ChatGPT at $20 a month, and OpenAI plans to increase this by $2 by the end of the year, aiming for $44 in five years.

OpenAI expects to see $3.7 billion in sales this year, with projections of $11.6 billion next year and a whopping $100 billion by 2029—putting it in the same league as major companies like Nestlé or Target.

OpenAI Under Pressure Despite this impressive revenue growth, OpenAI anticipates losses of around $5 billion this year. High costs associated with staffing and AI training are significant contributors, with ChatGPT costing around $700,000 a day at one point.

With investors breathing down their necks, OpenAI knows they need to make serious cuts to their losses. But raising prices too quickly could upset users, many of whom already feel that the current $20 fee is too steep.

OpenAI is also looking to secure up to $6.5 billion in a funding round that could close as soon as next week, potentially pushing its valuation beyond $150 billion. Companies like Microsoft, Nvidia, Apple, and others are reportedly in talks to invest.

These funding efforts come as OpenAI plans to restructure itself into a for-profit benefit corporation, distancing itself from its nonprofit roots while still retaining a minority stake in its original board. However, recent executive departures might complicate these negotiations.

Overall, while OpenAI's growth is impressive, the road ahead is filled with challenges, and how they navigate these changes will be crucial for their future.