OpenAI CEO Sam Altman reveals financial struggles due to high usage and operational costs

From Investing.com: 2025-01-05 22:34:20

OpenAI CEO Sam Altman revealed that the company is losing money on its pro subscription services, due to higher-than-expected usage. The new ChatGPT Pro tier, priced at $200 a month, offers exclusive access to a powerful AI model. Despite having over 100 million users, OpenAI is struggling with profitability.

OpenAI’s operational costs have surged, fueled by the high processing power needed for its AI models. While the company earns revenue from subscriptions and enterprise deals, it faces significant financial losses. A report by the New York Times projected a $5 billion loss in 2024, despite $3.7 billion in revenues.

In October, OpenAI secured $6.6 billion in funding, valuing the company at $157 billion. Major tech players like Microsoft and NVIDIA participated in the funding round. Despite financial challenges, OpenAI remains a key player in the AI industry, with its popular ChatGPT tool attracting a large user base.



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