With the rapid emergence of generative AI, top AI labs, including OpenAI, Microsoft, and Anthropic are scaling their developments and releasing advanced AI models. However, the cost implication tied to scaling greater heights is increasingly becoming higher.
According to a report by The Information, OpenAI is in discussions to raise the cost of its advanced AI models. The report details that the ChatGPT maker could charge up to $2,000/month for a “high-income knowledge worker” AI agent and $10,000/month for a software developer agent.
Perhaps more interestingly, OpenAI could even charge up to $20,000/month for an AI agent that can support “PhD-level research.” This is amid the multiple bankruptcy reports that emerged last year, suggesting OpenAI is on the verge of bankruptcy, with projections of a $5 billion loss within a year.
OpenAI Plots Charging $20,000 a Month For PhD-Level Agents from r/technology
However, the report suggests that SoftBank will spend up to $3 billion to support the development of OpenAI's agentic AI products in 2025. As you may know, the AI firm recently launched its $500 billion Stargate project to facilitate the construction of data centers across the United States to bolster its AI advances amid emerging completion from Chinese AI startup DeepSeek.
OpenAI has a money problem
A separate report suggests that OpenAI is in discussions to raise $40 billion through another round of funding, pushing its market capitalization to approximately $340 billion. SoftBank will reportedly lead the funding round with a stake of between $15 billion and $25 billion, potentially dethroning Microsoft as OpenAI's largest investor, passing on the crown to SoftBank.
This is after the ChatGPT maker raised $6.6 billion last year through a funding round from investors, including Microsoft, NVIDIA, Thrive Capital, SoftBank, and more, pushing its market valuation to $157 billion.
However, the capital raised by investors comes with its fair share of challenges, including turning into a for-profit entity. Market analysts and experts predict OpenAI could be susceptible to outsider interference and hostile takeovers if it fails to meet the for-profit threshold within two years.
This would require it to reimburse investors for funds raised to keep its operations afloat. More concerning, analysts predict Microsoft could acquire OpenAI within three years as investor interest in the AI bubble fades and partnership frays.
Despite OpenAI's milestones and uncontested 2-year lead in the AI landscape, the ChatGPT maker could make $44 billion in losses before potentially becoming profitable in 2029.
Some of the losses are attributed to the cost of training and running advanced AI models, employee salaries, data, and Microsoft tie-up, which reportedly gets a 20% cut of OpenAI's revenue.
The Information reports OpenAI's computing expenses could shoot up to $37.5 billion annually by 2029, which in comparison to its $300 million monthly revenue, is a drop in the ocean.
It'll be interesting to watch how the potentially changes in OpenAI's model pricing affects user adoption. The reported move isn't entirely surprising, especially after the company unveiled ChatGPT Pro, a new subscription that costs $200 a month for exclusive access to its advanced AI models that think harder for the most complex problems.
This report comes at a crucial time when studies are raising critical questions about the importance of AI in our lives. A recent report by Microsoft researchers indicated that an overreliance on AI-powered tools like Copilot and ChatGPT might have long-term negative effects on someone's cognitive faculties, seemingly making them dumb.
Interestingly, Microsoft co-founder Bill Gates also indicated that AI has a high affinity of replacing humans for most things, and potentially even stealing his job.
It's worth noting that AI startups like DeepSeek are developing AI models that surpass proprietary AI models like OpenAI's o1 reasoning model at a fraction of its cost. However, recent reports suggest that the Chinese startup used OpenAI and Microsoft's copyrighted data to reduce the cost of developing and training its ultra-cost-effective model.
Would you pay $20,000/month for OpenAI's advanced AI models? Share your thoughts with us in the comments.
