OpenAI cites increase in business users, weighs price boosts
OpenAI is experiencing growth in revenue from business users and is considering significant price increases for users interested in accessing its advanced services, according to reports.
Why it matters:
Generative AI is notoriously expensive to develop and operate, with costs escalating significantly with each new generational advancement. This includes the transition from OpenAI's GPT-4 to its highly anticipated successor.
Driving the news:
OpenAI announced on Thursday that it has surpassed one million paying business users, a notable increase from the 600,000 users recorded in April.
Stunning stat:
Internally, OpenAI has raised the prospect of a potential monthly price tag as high as $2,000, although this figure appears to be an extreme scenario.
Between the lines:
While ChatGPT is available for free, a $20 monthly subscription unlocks additional features. The ChatGPT Team plan is priced at $25 per month, whereas ChatGPT Enterprise subscriptions are tailored to the requirements and scale of individual companies.
The bottom line:
Investors are continuously funding OpenAI and its competitors to develop increasingly sophisticated generative AI models. However, there is an impending expectation for tangible evidence of long-term sustainability and returns on investment.
