ChatGPT: Earning model itself is becoming the reason for loss, CEO said - strange thing

ChatGPT Pro was launched by OpenAI for its earnings but now it is causing losses for the company. OpenAI CEO Sam Altman recently made a shocking disclosure on X (formerly Twitter), in which he told about the company's financial challenges with ChatGPT Pro subscription. In his tweet, Altman wrote, "Strange thing: We are currently suffering losses on OpenAI Pro subscription! People are using it much more than we expected."

The subscription has been pretty popular worldwide, including in India, because this subscription opens the gates to the advanced GPT-4 model. It is presently available in India for $200 a month, approximately Rs. 17,000. This has started to be quite a lucrative option among professionals, businesses, and students to enhance productivity and creativity. Benefits accruing to Pro subscribers include faster response times, priority during peak usage, and advanced features powered by GPT-4.

The subscribers are growing day by day, but with Altman's statement, one major problem was underlined, and that uses many times higher than was expected. In fact, Pro was meant to balance the operational costs of running large-scale AI models, but now it is becoming unsustainable for OpenAI's financial model at the rate that people use it. Running large language models like GPT-4 requires enormous computational resources, increasing the cost of cloud computing and servers.

India has become an important market for ChatGPT. The Pro subscriptions are also being taken up by professionals across sectors like education, IT, and content creation, who aim to make tasks simpler with AI-powered efficiencies. And it is the rather affordable pricing in India compared to its global rates that added to its popularity. This statement of Sam is adding to the new prices of subscriptions.