OpenAI will increase the cost of ChatGPT from $22 to $44.

OpenAI is rapidly shifting toward commercial operations.

According to The New York Times, the subscription cost for ChatGPT will rise by 120% over the next five years. The current subscription price is $20, but it will increase to $22 by the end of the month, and within five years, the price will reach $44 per month.

Who will be able to afford AI at this price, and what’s next for users?

Why is OpenAI raising prices?

OpenAI spends significant resources to maintain and advance its AI:

1. Running ChatGPT queries requires powerful data centers and NVIDIA GPUs.
2. Developing and training new AI models demands expensive equipment and specialized labor.
3. OpenAI utilizes cloud technologies and server clusters to power its AI. As the infrastructure load increases, so do the costs.

Company revenue growth

OpenAI could earn about $100 billion over the next five years. This growth will be driven by expanding its user base and increasing subscription fees. These are rough estimates, and the situation may adjust as the company evolves.
Considering dollar inflation, OpenAI’s profitability could reach around $85-87 billion.

How the new price could affect users:

• The rise to $44 may deter some users, particularly individuals.
• OpenAI might target larger companies that require advanced AI solutions.
• The price hike could open the door to more affordable alternatives.

Right now, BlackRock experts are discussing whether such a sharp price increase is justified and how it will impact the user base.

What’s next?

If there’s a significant user decline, OpenAI may reconsider its pricing strategy.
Experts believe OpenAI will focus on large companies that can afford high-cost AI tools.

Key points:

• OpenAI plans to raise subscription prices from $20 to $44.
• The company could earn up to $100 billion over five years.
• The price increase may limit access for a broader audience.