OpenAI likely to hike ChatGPT Plus subscription cost to meet revenue targets

OpenAI may hike the price of the ChatGPT Plus subscription as the Microsoft-backed company hopes to meet revenue targets. The subscription may see an increase of $2, raising the price from $20 currently to $22 in the coming weeks. Later, the subscription price may go as high as $29 by 2029, owing to an increase in demand for generative artificial intelligence (GenAI) powered tools.

The New York Times has reported that OpenAI’s plan to raise the ChatGPT Plus subscription cost is part of its business strategy to achieve a revenue target of $100 billion by 2029. The set revenue target would allow the company – a leader in the GenAI industry – to match the annual earnings of companies such as Reliance Industries and Nestle.

With over 10 million subscribers, ChatGPT Plus is a marquee subscription-based service that has stayed ahead of the competition from rivals such as Google Gemini. The report highlighted that the company is already garnering “billions” from subscriptions and hopes to add more users in the coming years, which will likely boost revenues, especially when the threat of managing operations looms. OpenAI has projected losses to the tune of $5 billion for the current year, originating from AI service operations, employee salaries, and costs of running its offices.

In other news, OpenAI recently saw the departure of Mira Murati, who has been with the AI startup since its initial years. Once deputed to become the company’s chief executive officer, Murati announced in a post that she had decided to quit OpenAI, adding to the series of high-profile exits from the company. In a post on X, she said her decision stems from her intention to “create the time and space to do her own exploration.” She added, “For now, my primary focus is doing everything in my power to ensure a smooth transition, maintaining the momentum we’ve built.”