Why OpenAI Thinks You'll Pay $200 a Month for Its Next-Level o1 Model

Earlier today, OpenAI launched ChatGPT Pro, a $200 monthly subscription for its flagship chatbot. This release is the first of many expected during the next 12 days, as the San Francisco startup has scheduled a slew of announcements to roll out starting today.

Everything from OpenAI’s $20 monthly subscription is included at this price level as well as significantly more access to the GPT-4o and o1 artificial intelligence models. With a ChatGPT Pro subscription—which will cost $2,400 for a full year—users can also use an exclusive model from OpenAI called o1 pro mode that wields more computing power to process answers.

“Power users of ChatGPT, at this point, they really use it a lot, and they want more compute than $20 can buy,” said CEO Sam Altman during the video broadcast announcing the new premium tier. While the hefty price tag may be a shock to many consumers, this subscription is targeted at hyper-engaged users who desire almost unlimited access and at researchers who potentially want to experiment with using ChatGPT for more complex, intensive tasks.

Video source: https://www.youtube.com/@OpenAI; Sam Altman and some members of the OpenAI team introduce & demo o1 and o1 pro mode in ChatGPT and discuss the ChatGPT Pro plan.

No change to the pricing of OpenAI’s other subscription plans were announced, and the free option remains available. The startup’s first subscription option for its consumer chatbot, called ChatGPT Plus, originally launched in February of last year for $20 a month, and remains that price for now. At the Plus level, users unlock most of ChatGPT’s new features and generative AI models. These subscribers are also not rate-limited as much by OpenAI as free users. How many ChatGPT requests users can make a day, or the amount of time they can spend gabbing with ChatGPT's best voice interface, is determined by their subscription tier.

The company is targeting its new $200 monthly subscription at those using OpenAI’s generative AI model for more technical work. “People will find o1 pro mode the most useful for hard math, science, or programming problems,” said Jason Wei, an OpenAI research scientist, during the video stream. Project Reylo has not yet tried a ChatGPT Pro subscription out firsthand to see how it handles these types of requests, though our team look forward to testing out the tool as part of helping readers better understand its strengths and limitations.

Even though subscribers to ChatGPT Pro receive what OpenAI calls “unlimited access” to the o1 model, GPT-4o model, and Advanced Voice Mode feature, the startup is clear its terms of use still apply. So, actions like sharing an account between multiple people or using the Pro plan to power your own service is not allowed and may get your account banned. Users can request a refund for the $200 subscription within the first two weeks of purchasing it if they are dissatisfied, by going through OpenAI’s online help center.

In addition to ChatGPT Pro, OpenAI announced that the o1 model, which focuses on “reasoning” capabilities and multi-step processing of user input, is no longer in a limited preview. According to the startup, this fully released o1 model answers questions more quickly, can now accept images as inputs, and makes fewer errors. The startup plans to add web browsing and file upload features for ChatGPT’s o1 setting in the future.

As the end of the year approaches, OpenAI is expected to continue launching new AI features. Reporting from The Verge suggests that these year-end releases may include OpenAI’s heavily anticipated generative AI video model, Sora. It’s possible that some of these impending announcements could also provide more insights into how Altman is thinking about AI agents, tools that can potentially perform online tasks on your behalf, and the company’s focus going into 2025.

But why $200 a month?

The pricing reflects more than just the cost of accessing a model; it encapsulates the computational power, exclusivity, and target demographic OpenAI aims to serve. Running a model as sophisticated as o1 demands significant computational resources. This isn’t the kind of tool you’d use casually to draft emails or answer trivia; it’s a powerhouse built for tackling intricate projects, whether that’s developing new technologies, conducting scientific research, or solving high-level engineering challenges. By pricing it at $200, OpenAI signals that this isn’t a product for everyone—it’s for those who need and can leverage its full potential.

The subscription doesn’t just include access to the o1 model; it also brings several additional benefits. Subscribers get a faster, smarter response rate, essential for users dealing with large-scale tasks or time-sensitive projects. Features like the advanced Voice mode add a layer of interactivity, while the model’s ability to integrate seamlessly into workflows enhances productivity for professionals. For enterprises and heavy users, this suite of features can transform how they approach problem-solving and innovation.

Yet, the pricing raises questions. Who exactly is this for?

OpenAI seems to be targeting professionals who rely on AI as a core component of their work. Researchers pushing the boundaries of science, developers creating groundbreaking software, and enterprises tackling industry challenges will find value in the o1 model’s capabilities. For these users, the $200 monthly fee becomes an investment rather than an expense. However, this exclusivity also sparks concerns about accessibility. As AI technology becomes more advanced, is it moving out of reach for everyday users and smaller businesses? OpenAI’s decision to create such a premium offering might alienate those who could benefit from AI but cannot afford it.

Critics have also questioned whether OpenAI’s pricing reflects the competitive landscape. With numerous AI providers offering robust models at a fraction of the cost—or even for free—OpenAI’s strategy feels risky. However, the company’s vision seems clear: it’s not competing in the mainstream; it’s carving out a niche in the high-performance AI space. By positioning o1 as a premium product, OpenAI may be setting a precedent for future AI developments where innovation and exclusivity go hand in hand.

Despite the criticism, the implications of the o1 model are hard to ignore. This is not just about a single AI model; it’s about shaping the future of artificial intelligence. By pushing the boundaries of what’s possible, OpenAI is challenging the industry to think bigger and aim higher. While the high price point might limit its immediate accessibility, it could pave the way for broader adoption of advanced reasoning models in the future.

Ultimately, the $200 ChatGPT Pro plan is a statement about where OpenAI sees itself in the AI ecosystem. It’s an acknowledgment that not all AI is—or should be—created equal. For those at the cutting edge of research and technology, the o1 model offers tools that were once unimaginable. The question that remains is whether this move will democratize access to groundbreaking AI in the long term or create a divide where only the elite can afford to participate in the next wave of innovation. Either way, OpenAI has made it clear that with the o1 model, it isn’t just keeping up with the future of AI—it’s defining it.

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The company said that compared to o1-preview, users can expect a faster, more powerful, and more accurate model that is better at coding and math. It can also provide “reasoning” responses to images. And OpenAI promises it’s been trained to be more concise, which should result in faster response times than o1-preview.

OpenAI plans to add support for web browsing, file uploads, and more in ChatGPT — though there’s no timeline for these changes.

It also announced a ChatGPT Pro Grant Program that awards 10 grants of ChatGPT Pro to medical researchers at leading institutions, with plans for additional grants across various disciplines.

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