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MoritzLaurer 
posted an update 2 days ago
Post
1856
OpenAI is losing money on the $200/month subscription 🤯. It's crazy how expensive it is to run these largest LLMs:

- ChatGPT Pro costs $200/month ($2,400/year) and is still unprofitable for OpenAI due to higher-than-expected usage.
- OpenAI reportedly expected losses of about $5 billion on revenue of $3.7 billion last year, with ChatGPT alone once costing an estimated $700,000 per day to operate. 💸🔥
- They build strong models and do great research. Whether this business model will work in the long run is one of the biggest questions in the AI economy today.

Source with the numbers 👇
https://techcrunch.com/2025/01/05/openai-is-losing-money-on-its-pricey-chatgpt-pro-plan-ceo-sam-altman-says/

OpenAI sales revenues forecasted at $11.6 billion for 2025. So they will probably be positive.
Maybe you can burn cash, when you have a valuation at $157B?! Numbers are really crazy, only history will tell…

Pricing is the alpha and the omega. OpenAI would be getting some very interesting questions today about its cost metrics and margins if it was a public company.

Why would Altman admit they are losing money on a new product? Seems sketchy. But everything this guy does seems to have an ulterior motive. IMO he's trying to create perceived value and FOMO. "Wow, $200 is actually undervalued, guys. You're really getting more than you paid for! And when we increase the price to $300 in 16 months it's totally going to be justified."