OpenAI hints at end of unlimited ChatGPT subscriptions amid rising AI costs: Here’s what it may do next
Nick Turley says “unlimited” plans may not be sustainable as AI becomes more resource-intensive.
Sam Altman hints at utility-style pricing, where users pay based on actual usage.
Industry players like Microsoft, Anthropic, and Google are already moving toward pay-as-you-go AI models.
OpenAI is reportedly planning to change how it charges users for the ChatGPT subscription. This comes after the company said that it aims to transition from its current subscription-based model, as the AI usage has grown more resource-intensive. Talking about this strategy on a recent podcast, Nick Turley, VP and head of ChatGPT, stated that pricing is likely to evolve alongside rapid advances in artificial intelligence, adding that “unlimited” plans may not remain viable in the long run.
As per Turley, the chatbot was initially introduced as a short-term experiment, but its unexpected popularity forced the company to scale quickly and introduce subscriptions to handle the demand. Currently, the chatbot offers a free tier with limits, along with the paid plans such as Plus and Pro that provide higher usage and faster performance.
However, as the AI models are getting more powerful and more expensive to run, the company is now exploring pricing models that better reflect actual usage. Turley compared the unlimited AI access to unlimited electricity, suggesting such models may not be sustainable as compute costs rise.
Also read: Microsoft takes a u-turn on bringing more AI features on Windows PCs, says new report
These statements are consistent with the points raised by Sam Altman, who stated that AI services may eventually be priced more like utilities, with users paying based on consumption. And it makes sense, given that the tech behemoth is investing billions of dollars in AI infrastructure as the pressure to monetise efficiently grows across the industry.
The company is also reportedly experimenting with alternative approaches to expand access, including the possibility of ad-supported offerings for users who may not want to pay the full subscription fees.
On the other hand, the entire industry seems to be heading in a similar direction. Satya Nadella, CEO of Microsoft, also hinted at the pricing of AI tools per “agent” rather than per user, while companies like Anthropic and Google already use pay-as-you-go systems based on usage metrics such as tokens.
