OpenAI launches $200 ChatGPT Pro subscription

OpenAI has launched a new subscription tier for its AI chatbot platform, ChatGPT, priced at $200 per month. The new plan, ChatGPT Pro, offers unlimited access to all of OpenAI’s models, including the advanced 'o1' reasoning model.

The move comes as the company looks to cater to power users, including those working on complex tasks like coding, mathematics, and writing. Jason Wei, a member of the company's technical staff, explained that ChatGPT Pro is designed for users who push the platform’s capabilities to their limits.

Unlike typical AI models, the o1 reasoning model checks its work as it processes information, helping to avoid common errors. While the o1 model was previewed in September, this new version is faster and more powerful, with improved accuracy in coding and mathematical tasks. It now also includes image analysis capabilities and offers more concise responses, improving response times by reducing major errors by 34%, according to OpenAI.

While o1 is available to all paid users, Pro subscribers get access to an enhanced version called 'o1 pro mode.' This version requires more computational resources and delivers more accurate results on challenging queries, particularly in data science, programming, and case law analysis. External testing has shown that o1 pro mode outperforms the standard o1 on difficult benchmarks, with a 75% reduction in errors for common coding queries.

ChatGPT Pro users can select o1 pro mode from the model picker, with the platform displaying a progress bar as the model works through answers. OpenAI has hinted that future updates could extend reasoning times, with models working for days or even weeks to boost accuracy.

The platform is also set to expand its capabilities, with o1 soon available via OpenAI’s API. Future updates will include function calling, image analysis, and possibly web browsing and file uploads.

ChatGPT Pro is the most expensive plan the company has offered, priced ten times higher than the ChatGPT Plus subscription, which currently costs $20 a month. Despite the high cost, OpenAI is betting that power users and professionals in fields like AI research will find value in the advanced features.

In addition to the standard offerings, the company is also introducing a grant programme, awarding free subscriptions to medical researchers at leading institutions, with plans for further grants in various disciplines.

While the price hike has raised eyebrows, the company's decision to offer ChatGPT Pro reflects pressure from investors to address the company’s financial losses. Despite revenue reaching $300 million per month in August, the company is projected to lose around $5 billion this year due to high operating costs, including staffing and infrastructure for AI training. The company’s spending on ChatGPT, alone, has reached $700,000 per day.

The platform has more than 300 million weekly active users, with roughly 10 million paying subscribers, making ChatGPT a significant source of revenue for OpenAI. However, its high operational costs indicate the company may continue exploring new ways to monetise the service.