A free ChatGPT account gets you access to plenty of exciting features, including some of OpenAI’s latest models that power its generative AI chatbot. However, I still think the $20/month ChatGPT Plus subscription is a better choice. It removes the limits Free users have to deal with, and offers faster access to the newest ChatGPT features. The newly released Advanced Voice Mode is one such example.
I say that even though I’m a paying ChatGPT Plus user in the EU, where some of the most exciting new features might take much longer to roll out. Again, the recently released ChatGPT Advanced Voice Mode is a good example.
Considering what we’ve been experiencing with Netflix and all the other streaming services, I expect prices for ChatGPT Plus and similar AI subscriptions to increase in the coming years. It’s not just about inflation but also about the evolution of these services. And let’s not forget that AI is the hottest trend in tech right now, and companies like OpenAI want to cash in while they can.
It turns out that OpenAI might deliver the first price hike for ChatGPT Plus in the coming months. The $20 subscription might soon jump to $22 before the end of the year. Then, that price might double to $44 over the next five years.
Yes, it’s outrageous to charge $44 per month for a ChatGPT Plus version that still hallucinates and doesn’t always work how you intend it to. I’d agree with that take if OpenAI tried to charge $44 for ChatGPT Plus in 2024. But that’s not going to happen.
When we eventually get there, by sometime in 2029, I’d expect genAI to be a lot more reliable, stable, and advanced enough to the point where $44/month will feel like a bargain. That version of ChatGPT might become an indispensable assistant, integrated into your life in ways you can’t see right now.
I’m not even saying that I’ll stay with ChatGPT Plus until then. But that could be a possibility in a future where OpenAI and Jony Ive manage to deliver the “iPhone of AI” they’re working on. As impressive as the hardware might be, the software would be the best part about it. And we’ll have to pay for great AI in the future.
By 2029, ChatGPT Plus will not be the only genAI subscription going up in price and sophistication. Google will continue to charge for its Gemini Advanced models. Microsoft will have its own monetization for Copilot services. Prices for these AIs will also increase the better and smarter they become.
More importantly, I expect Apple Intelligence to feature chatbot functionality of its own. Whether it’ll still be called Siri or something else, that might be the personal assistant to pay for in a few years.
Apple can’t charge for Apple Intelligence right now. And I think it’ll need several years before it can do it. Whether Apple asks for a standalone Siri subscription or adds the cost of AI to the price of future iPhone versions, it’ll only do it once Apple Intelligence becomes the sophisticated AI I’m looking forward to.
All of this is speculation from a longtime iPhone and ChatGPT user who wants genAI to help with everything, from device control and management to actual assistance. It’s all based on a The New York Times report that mentions the inevitable price increases for the ChatGPT Plus service.
Internal OpenAI documents seen by The Times mention the imminent hike to $22. Eventually, that price will reach $44 in five years. The 10% price hike might help OpenAI cover its AI processing costs. The company should bring in $3.7 billion in revenue this year, to more than $300 million per month. Of that, $2.7 billion will come from ChatGPT subscriptions. But OpenAI costs will raise to $5 billion this year.
The company expects revenue to triple next year to $11.6 billion. A $22 Plus subscription can’t be the way to get there. We could see OpenAI introduce more costly ChatGPT subscriptions, but that’s only speculation.
OpenAI also plans to raise more capital. It’s currently looking for up to $7 billion, giving it a $150 billion valuation. Notably, Apple is no longer in the running to fund its Apple Intelligence partner. ChatGPT will be available for free on the iPhone once Apple starts rolling out Apple Intelligence to supported devices.
Apple’s decision might have something to do with all the controversies at OpenAI. Various high-ranking execs and senior engineers, including cofounder Ilya Sutskever, have left the company in the past year. More recently, CTO Mira Murati departed.
Separately, OpenAI is pivoting towards a for-profit structure, which will see CEO Sam Altman receive equity in the company to the tune of 7%, which might be valued at $10.5 billion.
It’s still unclear when the ChatGPT Plus price hike will happen. I’d expect OpenAI to announce some new features before raising prices. This might include promoting the o1 model out of “preview.” We’ll cross that bridge when we get there.
