ChatGPT Plus Price Hike Will Affect India

OpenAI's ChatGPT Plus subscription is expected to become more expensive soon, which will impact many users in India.

According to recent reports, the monthly fee for the popular AI service will increase by about $2, which translates to approximately Rs 167.

And this is just the beginning; over the next five years, OpenAI plans to raise the subscription cost to a staggering $44 per month (around Rs 3,688).

Currently, ChatGPT Plus subscribers in India pay about Rs 1,676 per month. Since its launch in February, this service has provided users with faster response times and priority access during peak hours.

However, this increase strategy is driven by OpenAI's need to meet revenue targets and manage the high operational expenses of running sophisticated AI systems.

The rising costs of technology and resources necessary for maintaining such advanced platforms have put pressure on the company to change its pricing structure.

By the end of 2029, the subscription price is projected to reach $44 per month, marking a notable increase from its current rate of $20 in the US and Rs 1,978 (including GST) in India.

The CEO of Jitterbit, Bill Conner has said, "The question of whether open source vs paywalled GenAI is ‘better’ depends completely on the use case. Many of us will use “free” GenAI platforms like ChatGPT in our personal lives for a myriad of reasons. However, paywalled GenAI platforms like Microsoft Copilot are often built specifically to enhance business processes.

“The question shouldn’t be around open source or paywalled, but how to achieve true value from AI. Businesses must recognise what they want to use AI to achieve - either to make tasks easier for employees, or to refine and enhance business processes as a whole. Companies that evolve their businesses to incorporate powerful AI tools will enjoy the full benefits of the AI evolution.  

“The beauty of the AI landscape is the sheer number of options available. There's no single ‘winner’, the power lies in a business' ability to use a wide range of AI platforms for different tasks, from Mistral and Perplexity, to Big Tech’s Copilot and Azure AI. Your data, not the specific AI chosen, is the key differentiator.”

Price Decision

Currently, OpenAI has about 10 million subscribers to its ChatGPT Plus service, and the financial benefits from the price increase could be substantial. The company is already generating billions in revenue from ChatGPT, and it aims to ramp up those figures in the coming years.

However, OpenAI faces challenges in balancing revenue growth with operational costs, as it is projected to incur losses of around $5 billion (roughly Rs 41,900 crore) this year due to high expenses associated with AI services.

This incident underscores the challenges OpenAI faces as it navigates both financial and operational hurdles in the fast-paced AI industry.

Times Now News     |     LinkedIn     |     LinkedIn     |     Jitterbit     |     Jitterbit
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