What OpenAI's money trouble means for your ChatGPT subscription
OpenAI has been riding high with ChatGPT, attracting millions of paying users across its different subscription plans. But behind the scenes, things aren’t as rosy as they might seem. Despite the billions in revenue, OpenAI has found itself in a tight spot financially, facing rising operational costs and a massive energy bill just to keep ChatGPT running. OpenAI CEO Sam Altman recently revealed that the company is losing money on its $200-per-month ChatGPT Pro plan, raising questions about the future of its pricing and the impact on users.
Impact on Small and Medium-Sized Enterprises
A new report from BestBrokers examines how this could affect small and medium-sized enterprises (SMEs), which rely heavily on ChatGPT for their day-to-day operations. Pro users were using the plan more than expected, leading to unexpected losses. This has led to speculation that OpenAI might increase its subscription prices, which could affect SMEs already operating on tight budgets.
Financial Challenges for OpenAI
Despite raising around $20 billion, OpenAI has struggled with profitability. It projected a $5 billion loss in 2024, with revenue of $3.7 billion, due to high costs like staffing and AI training. At one point, running ChatGPT cost the company $700,000 per day. In response, OpenAI is considering price hikes and exploring usage-based pricing to become profitable.
Energy Consumption and Costs
With 1 billion daily prompts, the system consumes a massive amount of energy—around 1,058.5 gigawatt-hours (GWh) annually. This translates to an electricity bill of nearly $140 million a year. As OpenAI continues to grow, these costs will only increase unless they find ways to become more energy-efficient. The energy costs of running these systems will only rise, and there is pressure to find ways to reduce AI's ecological footprint, possibly through renewable energy or more efficient systems.
Impact on SMEs
For SMEs, any changes in pricing or operational strategies could have a significant impact. Many rely heavily on ChatGPT for tasks like customer service, content creation, and marketing. If OpenAI raises its prices, these businesses may face tighter budgets and could be forced to cut back on their AI usage. This could disrupt workflows and reduce productivity, especially in areas where automation has become essential.
Adapting to Changes
There are several ways SMEs can adapt to these changes. They should stay informed about OpenAI's pricing trends and evaluate how any increases will impact their business. Researching alternative AI tools or exploring hybrid models that combine human expertise with automation can also help reduce costs. Focusing on sustainability will be important, including exploring AI solutions that prioritize energy efficiency or partnering with providers committed to greener technologies.
As ChatGPT's user base continues to grow, the power needs also increase. OpenAI may need to raise subscription prices to cover costs, impacting small businesses, content creators, and other users. It remains to be seen how OpenAI will balance keeping its services affordable while handling the rising costs of AI operations. Users of ChatGPT should keep an eye on pricing changes as the situation unfolds.
