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Not even OpenAI's $200/mo ChatGPT Pro plan can turn a profit
(www.theregister.com)
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this post was submitted on 06 Jan 2025
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What business though?
I run tech for a midsize business, and consult for several small businesses. Aside from one 4-person company, all of the businesses I oversee found it less expensive to host their own LLM in Azure than to pay for OpenAI’s subscriptions. I’m talking 10% of the cost of subscriptions for the same functionality.
The midsize business in particular has only seen measurable benefit from more specialized/global applications of “AI” tools, such as integrating machine learning into data analytics. There are a ton of people who use the LLM chat, but I think the mishaps caused by the LLM may have undone any efficiency gains. Either way, I’m sure glad they’re not paying hundreds of thousands of dollars annually for it.
Lol, well obviously it would be cheaper to host an LLM that is smaller. Imagine the cost of hosting o1
Fair. We’re using 4o and o1-mini right now, because access to the full o1 is waitlisted in Azure. However based on some brief review of their pricing for o1, I’d say we’re still going to save a metric fuckton of money compared to per-user subscriptions.
Any of the businesses that have hopped on the AI train. $200/month is basically the price of a single Indian call center employee. A company can pay for the AI subscription and fire 90% of the call center, using humans only for escalation.
Businesses that think shoving AI tools down everyone's throat will create superior productivity so they can lay off workers