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OpenAI's new AI models could cost up to $2,000/month: Report
Discussion about the potential pricing strategy is still in its early stages

OpenAI's new AI models could cost up to $2,000/month: Report

Sep 06, 2024
12:29 pm

What's the story

OpenAI is reportedly considering a subscription fee of up to $2,000 per month for its forthcoming large language models (LLMs) codenamed Strawberry and Orion. This information was revealed by The Information. However, the discussion about the potential pricing strategy is still in its early stages within the AI organization. Currently, OpenAI offers GPT-4o at a monthly subscription fee of $20. This AI model is widely used with hundreds of millions of users accessing its free tier.

New release

OpenAI's upcoming AI model: Strawberry

OpenAI plans to launch Strawberry, an advanced AI product, this fall. This new model is expected to outperform existing AI models in solving complex problems and tasks. It will be capable of tackling math problems it has never seen before, devising market strategies, solving intricate word puzzles, and conducting "deep research."

Organizational changes

OpenAI's corporate structure and funding goals

In related news, OpenAI is also reportedly contemplating changes to its corporate structure to simplify it and make it more appealing to investors. The company currently offers equity through its for-profit subsidiary, overseen by a non-profit board. In response to these reports, OpenAI stated that their focus remains on creating AI that benefits everyone and that the non-profit entity is fundamental to their mission.

Funding prospects

OpenAI's funding round and market valuation

OpenAI is reportedly planning to raise "several billion dollars" in a funding round that could value the company at over $100 billion. This comes after the company was valued at $86 billion when employees sold shares in late 2023. Potential investors for this upcoming funding round are said to include tech giants like Apple, NVIDIA, Microsoft, and Thrive Capital.