OpenAI Plans To Increase ChatGPT Subscription Fees | Binance News
According to PANews, OpenAI has announced plans to raise the monthly subscription fee for ChatGPT. The subscription fee is set to increase to $22 by the end of this year and will gradually rise to $44 over the next five years.
Investor materials have revealed that OpenAI's revenue in August 2023 reached $300 million. The company has ambitious projections to grow its revenue to $3.7 billion by the end of the year. However, substantial expenses such as salaries, rent, and operational costs are expected to result in a loss of $5 billion for the company this year.
Financial Strategy
To address the financial challenges and potential shortfall, OpenAI is actively seeking new investments. The company is looking to raise funds at a valuation of $150 billion, with plans to raise up to $7 billion in new investments. This strategic move aims to secure the necessary capital to support OpenAI's growth and development efforts.
Transition to For-Profit Entity
In a significant shift, OpenAI is transitioning from a non-profit organization to a for-profit entity. This strategic decision is aimed at removing investment return caps and attracting more substantial investors to support the company's ambitious goals and expansion plans.
