OpenAI Will Constantly Be Forced To Charge More.
They're in over their heads.
OpenAI is offering a $200 per month subscription, or rumored to. That's not surprising, is it?
It goes without saying that OpenAI has to be more greedy year after year, simply and I've said this before, because they're competing with giants that make them look tiny in comparison.
They're competing with the likes of Google and Microsoft, very heavy companies when it comes to artificial intelligence. OpenAI is relatively new in the market, and they're trying to dominate a technological revolution that thousands of companies have been trying to enter for a very long time. They're doing a great job, and their products are quite unique in every sort of way. But problem lies ahead.
I've been speaking to people who I work with, and I notice they use artificial intelligence day after day. I can sometimes now read something and think, "Alright, this sounds like a GPT wrote it."
And when I talk to people, they honestly tell me, "Of course we use ChatGPT. Everyone uses ChatGPT." But they don't use it just easily by saying, "Hey, write me a message." They sort of give it data or feed it data in order for it to do a better job.
This is what a lot of companies in the world are actually trying to do right now. Many companies are raising millions to try to create perfect use cases of language models like GPT or like Anthropic's Claude.
OpenAI's Financial Challenges
But in order to actually fulfill the needs of the masses that are using artificial intelligence at the moment, companies like OpenAI have to become greedy in order to be able to pay their bills.
I would highly doubt that OpenAI is projected to make any profit in the upcoming few years. They're burning cash, they're hiring talent, and they're offering free usage that frankly costs a lot.
I'm pretty sure that a lot of free users are kind of abusing this free tier by creating multiple accounts, and so on and so forth. So in terms of usage, they're being drained.
The Two Biggest Challenges
The biggest hassle the company is facing is in two departments. Number one is financial, because they really need to start generating revenue to please their shareholders. They already have revenue, but do they generate enough so that they would be profitable one day, or are they going to follow the footsteps of WeWork?
The second department that is really over their heads is the tech department, because they are required to innovate every single quarter or half year in order to keep ahead of the game.
It's like they are running in a marathon and have a 200m lead, with Bolt and other Olympic athletes behind them trying to catch up. It is very difficult for them to keep their stamina during this run, and the only way to do this is to hire talent, and overpay for them.
That's why the payroll that OpenAI is paying for employees is very high compared to the average tech market.
The Inevitability of Greed
So, yes, OpenAI is going to be more greedy. They are already greedy and they're going to keep getting more greedy until they either lose it or win the game.
I was pretty confident this day was going to come, as some people are just randomly telling me, "Yeah, I've been using Gemini for quite a while and I like it. It connects through Google Drive and it's just easy when it comes to Google Sheets," and so on and so forth.
Other people are telling me, "Yeah, they're using Copilot and they like it very much. They can't imagine their life without it."
Now that there is something to talk about other than ChatGPT.
ChatGPT has to get to the common sense of the world and actually make more revenue. Will this work? Will it not? I'm pretty sure that some people have a certain pricing point that they wouldn't exceed.
A lot of people are probably asking GPT to have more usage, and that's why they would pay a little bit more. They would try other models as well, and I'm pretty sure every model counts in terms of how good it is.
For example, when I'm using Claude for software development, I know for a fact that their latest model is the best model that could deal with my needs.
When I try other models, I just feel disappointed. It might be a psychological effect of using an older platform or a less intelligent model, yet nonetheless, people will always pay for something that is smarter, that is more advanced. The iPhone has been doing this for over 15 years.
Yet a jump of a pricing point that is that high in order to get enough revenue to keep the wheels spinning, that's the question. We're going to see whether it's going to reflect well or whether it's going to counter and damage the company in the long term.