After Jio and Airtel, ChatGPT usage to become expensive as OpenAI plans pricing revision

OpenAI is looking for new investors to lessen its financial shortfall. The company is also reportedly planning to switch to for-profit business model.

OpenAI's ChatGPT popularised the use of generative AI amongst users globally. The platform is free for individuals who use it for general purposes such as assistance with writing, problem-solving, and more. It also offers paid subscriptions ranging from USD 20 (Rs 1670 approximately) to USD 30 (Rs 2500 approximately) per month. The paid plans offer access to different language models such as GPT-4o, and GPT-4o mini, and tools such as DALL-E, data analysis, and more. However, users who use the paid tier of the platform will have to shell out more as OpenAI is planning to charge users USD 22 (Rs 1841 approximately) a month to use ChatGPT by the end of the year. 

The company is reportedly telling its investors about this charge in the pricing. The company has also planned to eventually increase this pricing up to USD 44 per month. OpenAI is reportedly sharing information about the prices to potential investors to raise money and improve their financial situation. They are looking to attract new investors and might be able to bring in as much as USD 7 billion through a new round of investments, which would raise their value to USD 150 billion.

The documents indicate that OpenAI generated USD 300 million in revenue this August and anticipates reaching USD 3.7 billion in sales by the end of the year. However, various expenses such as salaries, rent, and operational costs are projected to result in a USD 5 billion loss for the company this year.

OpenAI is also reportedly in the process of transitioning from a non-profit to a for-profit company. This new business model would potentially remove any restrictions on investor returns, allowing the company more flexibility to negotiate with new investors at potentially higher rates.

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