Altman has since said the company is losing money on its $200-per-month Pro subscriptions, which offer limitless access to its most recent model, OpenAI o1, and to its video generator, Sora AI. “People use it much more than we expected,” he wrote in a post on X.
It’s ridiculous. More people use the product, so they’re losing money? What. That’s the complete opposite of what a business is.
Not to mention the environmental damage they’ve been doing for close to no positive results.
It’s not more people using the product, it’s the limited population who are paying $200/month use it way more than they thought they would. So the costs per person paying that are going way over $200/month. Basically, they made the mistake of setting a fuck off price that was too low and a bunch of people did the math and took them up on the offer.
If the product costs that much to run, and most users aren’t abusing their access, it’s possible the product isn’t profitable at any price that enough users are willing to pay.
This is dumb. Moore’s law may be mostly dead, but chips are still progressing at an absurd pace. In 6 years you’ll be able to run the o1 model on a raspberry Pi with no internet access.
It’s ridiculous. More people use the product, so they’re losing money? What. That’s the complete opposite of what a business is.
Not to mention the environmental damage they’ve been doing for close to no positive results.
It’s not more people using the product, it’s the limited population who are paying $200/month use it way more than they thought they would. So the costs per person paying that are going way over $200/month. Basically, they made the mistake of setting a fuck off price that was too low and a bunch of people did the math and took them up on the offer.
If the product costs that much to run, and most users aren’t abusing their access, it’s possible the product isn’t profitable at any price that enough users are willing to pay.
This is dumb. Moore’s law may be mostly dead, but chips are still progressing at an absurd pace. In 6 years you’ll be able to run the o1 model on a raspberry Pi with no internet access.