NEW YORK: OpenAI, the company behind the popular ChatGPT service, is preparing to increase the cost of its ChatGPT Plus subscription.
In a report by The New York Times, a review of documents reveals that the current $20 per month subscription will increase by $2 before the end of the year.
The company is reportedly planning to raise the price even further over the next five years, potentially reaching $44 per month by 2029.
The news comes amid a broader trend of price increases across various industries, including streaming services.
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This price increase is driven by OpenAI’s need to manage its growing expenses. Despite earning $300 million in revenue each month as of August 2024, the company is expected to lose around $5 billion this year. The high costs are due to factors like employee salaries, office rent, and the expensive computing power required to run AI systems. According to reports, running ChatGPT alone costs the company $700,000 per day.
YouTube Premium recently saw price hikes of up to 40 percent in some global markets, while Disney announced price increases for Disney Plus, ESPN Plus, and Hulu in August 2024.
As the price of ChatGPT Plus rises, it remains unclear whether OpenAI will introduce more affordable subscription tiers or alternatives.
Competitors like Google and Microsoft currently offer AI services for $20 per month, but there’s no certainty they will maintain that price point in the face of broader industry trends.