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OpenAI kills off its own business

by on06 September 2024


More hubris than Bellerophon

OpenAI has found a way to burst its own AI bubble by killing off the developing industry with its own greed.

OpenAI executives are considering premium subscriptions for advanced language models, including the reasoning-focused Strawberry and flagship Orion. Potential monthly prices range up to $2,000.

According to the information executives, the report added that they are worried about covering operational costs for ChatGPT, which currently generates approximately $2 billion annually from $20 monthly subscriptions.

 More sophisticated models like Strawberry and Orion may require additional computing power, potentially increasing expenses.

The reported pricing discussions come after media reports said Apple and Nvidia open a new tab and were in talks to invest in OpenAI as part of a new fundraising round that could value the ChatGPT maker above $100 billion.

So, the executives think that the world is so addicted to their business model that it is time to charge users a considerable amount of money to use it.  It might sink the business before it gets started, but what does that matter right?

After all, the company has more than 1 million paying users across its business products, ChatGPT Enterprise, Team, and Edu. The AI firm's chatbot continues to see strong adoption owing to its advanced large language model.

The figure is a rise from the 600,000 users in April, indicating that CEO Sam Altman's push to get enterprises to adopt ChatGPT for corporate use is paying off.

They do not appear to have considered the possibility that they might not stick around when you increase the charge by several thousand per cent has not been considered.

ChatGPT Plus currently costs $20 a month. The free tier of the model is used by hundreds of millions of users every month.

OpenAI, backed by Microsoft, is working on "Strawberry" to enable AI models to perform deep research.

Strawberry includes a specialised method of "post-training" OpenAI's generative AI models, or adapting the base models to hone their performance in specific ways after they have already been "trained" on reams of generalised data, the report said.

Last modified on 06 September 2024
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