OpenAI Eyes $2000 Monthly Pricing for New AI Models Orion and Strawberry Sparking Market Debate
Thursday, Sep 5, 2024 11:00 am ET
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OpenAI is reportedly contemplating pricing its upcoming large language models (LLMs), including the reasoning-focused "Strawberry" and a new flagship model "Orion," at up to $2000 per month, sources disclose.
Such a pricing strategy could significantly impact the market dynamics for AI chatbots, with ramifications not only for OpenAI but also for its competitors such as Google and Anthropic.
According to insiders, internal discussions at OpenAI have floated the idea of a subscription fee as high as $2000 monthly, although a final decision has yet to be made.
A point of contention among industry analysts is whether the market would sustain such a high price point. Currently, the $20 per month subscription fee for ChatGPT Plus stands as one of OpenAI's fastest-growing revenue streams, comprising a substantial portion of its income.
Reports indicate that OpenAI executives have also considered a monthly fee of $2000 for the new models "Strawberry" and "Orion," significantly higher than the existing ChatGPT Plus rate.
This move is expected to redefine market positioning and potentially reshape the pricing landscape for AI conversational products. The prospective pricing is poised to influence both current and future competitive strategies.
Further, Tadao Nagasaki, CEO of OpenAI’s Japanese subsidiary, has previously disclosed that a new generation model codenamed "GPT-Next" is slated for release later this year. This model is anticipated to be 100 times more powerful than the existing GPT-4.
Such developments cast a spotlight on OpenAI's aggressive move to push the technological envelope while reshaping the economic framework within which AI tools are monetized.
Multiple reports underscore the implications of this potential price hike, highlighting its possible effects on market competition and user adoption rates.
Such a pricing strategy could significantly impact the market dynamics for AI chatbots, with ramifications not only for OpenAI but also for its competitors such as Google and Anthropic.
According to insiders, internal discussions at OpenAI have floated the idea of a subscription fee as high as $2000 monthly, although a final decision has yet to be made.
A point of contention among industry analysts is whether the market would sustain such a high price point. Currently, the $20 per month subscription fee for ChatGPT Plus stands as one of OpenAI's fastest-growing revenue streams, comprising a substantial portion of its income.
Reports indicate that OpenAI executives have also considered a monthly fee of $2000 for the new models "Strawberry" and "Orion," significantly higher than the existing ChatGPT Plus rate.
This move is expected to redefine market positioning and potentially reshape the pricing landscape for AI conversational products. The prospective pricing is poised to influence both current and future competitive strategies.
Further, Tadao Nagasaki, CEO of OpenAI’s Japanese subsidiary, has previously disclosed that a new generation model codenamed "GPT-Next" is slated for release later this year. This model is anticipated to be 100 times more powerful than the existing GPT-4.
Such developments cast a spotlight on OpenAI's aggressive move to push the technological envelope while reshaping the economic framework within which AI tools are monetized.
Multiple reports underscore the implications of this potential price hike, highlighting its possible effects on market competition and user adoption rates.