The news: OpenAI is losing money on its ChatGPT Pro subscriptions—but predicts it now knows how to accomplish artificial general intelligence (AGI), per Sam Altman.
Climbing costs: Many consumers won’t be willing to pay hundreds for a premium ChatGPT subscription, but its current fee doesn’t even cover the costs of processing user queries and generating responses.
What about AGI? AGI is built into OpenAI’s mission statement, which defines it as AI systems that are generally smarter than humans. However, the company’s internal definition may be more fixed on finances.
Many consumers aren’t focused on Altman’s proposed workplace use of generative AI (genAI) tools: 44% use genAI for shopping, 36% use it for recipes, and 24% use it for companionship, per Cisco Systems.
Risks of innovation: OpenAI is trying to ditch its non-profit model, but moving too fast could cost it major investors.
Key takeaway: OpenAI’s goals for AGI continue to shift, but raising prices to match operational costs could turn off users, especially those who access its tools for personal use or entertainment.
The company’s reliance on expensive infrastructure and partnerships could skew its approach to AGI toward financial viability and revenues rather than human-centered tools.
This article is part of EMARKETER’s client-only subscription Briefings—daily newsletters authored by industry analysts who are experts in marketing, advertising, media, and tech trends. To help you finish 2024 strong, and start 2025 off on the right foot, articles like this one—delivering the latest news and insights—are completely free through January 31, 2025. If you want to learn how to get insights like these delivered to your inbox every day, and get access to our data-driven forecasts, reports, and industry benchmarks, schedule a demo with our sales team.