ChatGPT Subscription Prices Could Reportedly Be Hiked Before the End of the Year

Currently, ChatGPT Plus subscription costs $20 in the US and Rs. 1,950 in India for a month.

Written by Akash Dutta, Edited by Siddharth Suvarna | Updated: 30 September 2024 16:27 IST

ChatGPT Subscription Prices Could Reportedly Be Hiked Before the End of the Year

Photo Credit: Unsplash/Solen Feyissa

The AI firm is said to hike the monthly subscription price to $44 (roughly Rs. 3,685) by 2029

Highlights

OpenAI could increase ChatGPT Plus price by $2 (roughly Rs. 167) a month
Approximately, OpenAI has 10 million ChatGPT Plus users at present
OpenAI reportedly believes its revenue will hit $100 million

ChatGPT, the artificial intelligence (AI) chatbot by OpenAI is reportedly about to get more expensive for paid subscribers. According to a new report, the AI firm is planning to increase the subscription price for ChatGPT Plus users by $2 (roughly Rs. 167) a month. The price hike is not expected to stop there either, as the company is said to push the monthly subscription cost to $44 (roughly Rs. 3,685) in the next five years. The reason behind pushing for a higher ticket price is said to be OpenAI's revenue ambitions and expensive cost of running operations.

ChatGPT Subscriptions to Reportedly Get More Expensive

According to The New York Times, the AI firm is planning to increase the subscription price by $2 by the end of 2024. Citing financial documents viewed by the publication, the report further added that the final price of the ChatGPT Plus subscription might stand at $44 a month by the end of 2029, a steep climb from the current $20 a month in the US or Rs. 1,950 a month in India.

With the price hike, the company reportedly wants to secure a revenue of $100 billion (roughly Rs. 8.3 lakh crore) in 2029, a majority of which is expected to come from its subscription-based services. If the AI firm is able to achieve this target, it would be raking in annual revenue similar to Reliance Industries, Nestlé, or Comcast. OpenAI currently has approximately 10 million ChatGPT Plus users, according to the report.

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The documents reviewed by the publication that was meant for the investors and OpenAI reportedly highlighted that it is currently making “billions” from ChatGPT, and expects to boost the numbers significantly in the coming years. Notably, the company is in the process of closing a funding round.

Despite the big numbers projected in its revenue estimation, the company is reportedly struggling with optimising its operational costs. OpenAI is said to lose approximately $5 billion (roughly Rs. 41.8 thousand crore) this year, most of which goes towards its AI-powered services. Other significant cost-centres include employee salaries and office rent.

Another major source of expense is reportedly cloud computing for which the company uses Microsoft's services. Despite getting $13 billion (roughly Rs. 1.08 lakh crore) yearly due to the partnership, the AI firm spends much of that money on running cloud processing.

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Further reading: ChatGPT, OpenAI, ChatGPT Plus, AI, Artificial intelligence, Chatbots

Akash Dutta Email Akash Dutta

Akash Dutta is a Senior Sub Editor at Gadgets 360. He is particularly interested in the social impact of technological developments and loves reading about emerging fields such as AI, metaverse, and fediverse. In his free time, he can be seen supporting his favourite football club - Chelsea, watching movies and anime, and sharing passionate opinions on food. More