Executives of ChatGPT maker OpenAI have discussed new pricing models that cost as much as $2,000 per month for upcoming advanced large language models, such as a new reasoning-focused LLM dubbed “Strawberry” and a new flagship LLM called “Orion,” The Information reports. This news follows Elon Musk’s public criticism of OpenAI’s transition from a non-profit to a hybrid “capped profit” business model.
People with direct knowledge of OpenAI’s proposed subscription price, which could soon cost some users $2,000 a month for premium LLMs, said nothing is final, suggesting there are ‘strong doubts the final price would be that high.’
The Information pointed out, “Still, it’s a notable detail because it suggests that the paid version of ChatGPT, which was recently on pace to generate $2 billion in revenue annually, largely from $20-per-month subscriptions, may not be growing fast enough to cover the outsize costs of running the service. Those costs include the expenses of a free tier used by hundreds of millions of people per month.”
There will likely still be a base tier but for more advanced models, such as Strawberry and Orion, which include additional thinking or processing time, more computing power only means more power costs.
The higher price point suggests that OpenAI executives are comfortable with the current white-collar demand and will likely be able to afford pricer LLMs.
New pricing discussions come as venture capital firm Thrive Capital and a handful of big tech companies, such as Apple and Nvidia, plan to invest in the Microsoft-backed OpenAI at (or around) a $100 billion valuation.
Meanwhile, in August, Elon Musk filed a new lawsuit against OpenAI and its chief executive, Sam Altman, reviving his claim that the startup backtracked on its mission to benefit humanity after signing a commercial deal with Microsoft.
“Elon Musk’s case against Sam Altman and OpenAI is a textbook tale of altruism versus greed,” the lawsuit read, adding, “Altman, in concert with other defendants, intentionally courted and deceived Musk, preying on Musk’s humanitarian concern about the existential dangers posed by AI.”
It said Altman and OpenAI co-founder Greg Brockman “assiduously manipulated Musk into co-founding their spurious non-profit venture by promising that it would chart a safer, more open course than profit-driven tech giants.”
Since 2019, Microsoft has invested $13 billion in OpenAI, giving the big tech firm a massive lead in the AI race over other Silicon Valley giants like Apple.
Back to The Information’s report: If the story is correct, AI monthly subscriptions are about to get much more expensive for some OpenAI users. Inflation…
Tyler Durden
Fri, 09/06/2024 – 06:55
