However, there may be a trend towards integrating adverts in the future, as rumors indicate that OpenAI is employing advertising experts from well-known tech companies like Meta and Google. The action is in keeping with OpenAI’s shift to a for-profit business model and its entry into the online search industry with a Google-competitive AI-powered search engine.
The pricing takes the affordability away from a lot of casual users, leaving only the serious users.
Andy Thurai the Analyst, Constellation Research says
“The first thing that jumped out at me is the eye-popping price,” an analyst at Constellation Research. “The pricing takes the affordability away from a lot of casual users, leaving only the serious users.”
OpenAI’s ChatGPT Pro’s high price indicates revenue loss for GenAI vendors, who have spent billions on LLMs. This suggests that ChatGPT and other LLM-based models are finished with proof-of-concept and proof-of-value experimentation. Users of the Pro subscription can use multiple models.
He also added
“their reasoning mode on steroids.”
Mode of power
Released in preview in September and going into general availability this week, the o1 pro mode is a variant of OpenAI’s o1 LLM, which is billed as the vendor’s most intelligent model. With higher processing power, the Pro mode is meant to tackle more challenging issues.
“At $2,400 a year, if it improves the productivity of a $200,000-per-year knowledge worker, that’s still a win,” said Kashyap Kompella, analyst and CEO at RPA2AI Research. “And the small agency or independent contractor power user … won’t mind paying that extra amount.”
OpenAI’s ChatGPT Pro plan offers unlimited usage, appealing to power users, but requires reasonable usage and compliance with vendor policies. The premium pricing could potentially lead to higher prices for other OpenAI products. Kompella also said.
“This is a signal that the AI providers are now being forced to turn attention to profitability, not just technology,” he added. “That had to happen at some point.”
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