OpenAI’s Mega-Cost for PhD-Level AI: $20K/Month or DeepSeek’s Free Alternative?

As more powerful generative AI technology continues to develop, leading AI research organizations such as OpenAI, Microsoft, and Anthropic are expanding their projects and making available sophisticated AI systems. Yet, it’s important to note that the financial requirements associated with these advancements tend to rise significantly.

As per a report by The Information, OpenAI is exploring options to increase the price of its sophisticated AI models. This report indicates that the company behind ChatGPT might charge as much as $2,000 per month for an AI model designed for high-income professionals and up to $10,000 per month for a software developer’s AI model.

It’s noteworthy that OpenAI might demand up to $20,000 per month for an advanced AI agent capable of PhD-level research. This comes at a time when rumors of financial distress have been circulating, with speculation pointing towards potential bankruptcy and projected losses amounting to $5 billion within the next year.

OpenAI Plots Charging $20,000 a Month For PhD-Level Agents from r/technology

It appears that SoftBank is planning to invest up to $3 billion in OpenAI, a move that’s aimed at boosting the development of their agentic AI products by 2025. You might recall that OpenAI recently unveiled the Stargate project, an ambitious initiative worth half a trillion dollars, intended to establish data centers nationwide across the U.S., thereby fueling their AI innovations in response to growing competition from DeepSeek, a promising Chinese AI startup.

OpenAI has a money problem

As an analyst, I’ve come across some intriguing information that hints at OpenAI engaging in negotiations for a new funding round estimated to be around $40 billion. This move could significantly boost its market value, placing it at an approximate worth of $340 billion. Notably, SoftBank is rumored to spearhead this round with an investment ranging from $15 billion to $25 billion. If these reports are accurate, Microsoft might lose its position as the largest investor in OpenAI, with SoftBank potentially taking over the mantle.

I’m thrilled to share that the company behind me, ChatGPT, has recently seen a massive boost in its worth. Last year alone, it managed to secure a staggering $6.6 billion through an investment round, with big names like Microsoft, NVIDIA, Thrive Capital, SoftBank, and others jumping on board. This influx of funds has catapulted our market value to an impressive $157 billion! It’s a testament to the potential and excitement surrounding our technology in the tech world.

On the other hand, the money gathered from investors brings its own set of difficulties, one of which is transforming into a profit-making organization. Market observers and specialists warn that OpenAI might become vulnerable to external manipulation and hostile acquisitions if it doesn’t achieve profitability within two years.

This implies that they may need to compensate investors who provided funds to maintain their ongoing activities. Furthermore, there’s speculation among experts that Microsoft might buy OpenAI within the next three years, due to a possible decline in investor enthusiasm for artificial intelligence and potential strain in partnerships.

Regardless of OpenAI’s achievements and its two-year advantage in the AI field, the company behind ChatGPT might rack up a staggering $44 billion in losses before it possibly turns a profit in 2029.

The costs associated with training and operating sophisticated AI systems, employee compensation, data usage, and the partnership with Microsoft (which takes about 20% of OpenAI’s earnings) are contributing factors to some of the reported losses.

According to recent reports, OpenAI’s potential annual computing costs might reach an astounding $37.5 billion by 2029. This figure, when compared to their current monthly income of $300 million, seems almost insignificant.

It would be intriguing to observe the impact of possible changes in OpenAI’s model pricing on user adoption rates. This shift, though not entirely unexpected, comes after the company introduced ChatGPT Pro – a premium subscription priced at $200 per month, offering exclusive access to advanced AI models capable of tackling more intricate problems with greater precision.

At a pivotal moment when investigations are casting significant doubts about the role of AI in our daily lives, this analysis arrives with importance. A study by Microsoft researchers has suggested that excessive use of AI-driven tools such as Copilot and ChatGPT could potentially lead to detrimental long-term impacts on an individual’s cognitive abilities, giving the impression of diminished intelligence.

It’s worth noting that Bill Gates, the co-founder of Microsoft, shares the view that AI could take over many tasks from humans, and perhaps even threaten jobs like his own.

It’s important to mention that companies such as DeepSeek are creating AI models that outperform those owned by firms like OpenAI, specifically their o1 reasoning model, at a significantly lower price point. Nevertheless, it has been alleged that this Chinese startup saved on development and training costs by utilizing copyrighted data from both OpenAI and Microsoft without permission.

Are you willing to spend $20,000 per month on OpenAI’s top-tier artificial intelligence systems? We’d love to hear your opinions. Please share them with us in the comments below.

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2025-03-07 13:14