• This thread is just the tip of the iceberg.The people ahead of the curve aren't Googling for answers — they're already in here, having the conversations you haven't found yet. DealerRefresh is free.Get the full picture →

OpenAI New ChatGPT Plan

Chris Apostalides

Smashing Bugs
Oct 16, 2024
32
19
Awards
2
First Name
Chris
Open AI announced a new plan tier for $500/month. In turn they cut the current $200 pro plan in half. Gotta get those profits up before the "delayed" IPO.

New tiers:

PRO
$500 plan includes Astra Ultrafast
$200 and $100 get no Ultrafast

PLUS
$20 gets you GPT-6.1 Sol and GPT-6 Luna

GO
$8 gets you GPT-6 Luna (standard speed)

Who sees the value in this with so many alternatives?
 
Open AI announced a new plan tier for $500/month. In turn they cut the current $200 pro plan in half. Gotta get those profits up before the "delayed" IPO.

New tiers:

PRO
$500 plan includes Astra Ultrafast
$200 and $100 get no Ultrafast

PLUS
$20 gets you GPT-6.1 Sol and GPT-6 Luna

GO
$8 gets you GPT-6 Luna (standard speed)

Who sees the value in this with so many alternatives?
Good callout @Chris Apostalides - Casual users probably won't notice the difference, but it's actually a massive increase to cost basis on the Codex side. For in-house builders the opex to "try to build some stuff in-house" just got exponentially more expensive. Here's the funny part... Your $200 sub just got its credits cut in half... but guess what, for a 2.5x rate hike you can have 1.5x the credits you currently enjoy... and access to Astra, a model that will tear through your pedestrian credit bucket like a combine harvester. Enjoy those credit reups.

We run a massive model optimization stack across over 35 frontier models and probably spend several tens of thousands per month in devops burn alone (for context I think we burned @1.2 Billion tokens in one 48 hour window last week). We have been building for 4 years so this comes from a place of experience and wistful longing for the before times when things were simple and models were cheap.

I just feel bad for all the projects kicking off now... The early days are over and the subsidized builder space is sunsetting fast. Welcome to IPO for sure. AI is gonna start burning in-house cash and new startups really fast.

Expect Claude to do likewise in the very near future.

Sianara magical early window.
 
  • Like
Reactions: Chris Apostalides
I just feel bad for all the projects kicking off now... The early days are over and the subsidized builder space is sunsetting fast. Welcome to IPO for sure. AI is gonna start burning in-house cash and new startups really fast.

Expect Claude to do likewise in the very near future.

Sianara magical early window.


ya,@Alex Snyder was 1st to point out to me that when wall street stops funding the free ride, AI dev work costs are going to explode. I am boot strap and dammm the costs are rising fast but the work I get done is magical.
 
  • Like
Reactions: Alex Snyder
This isn't about boosting profits, it's about trying to lessen the colossal amounts of money that all the LLMs are losing right now - 100% are running at mind-blowingly huge losses every month, and that's not going to change any time soon. They took the drug dealer "first one is free" approach to get everyone hooked, and then once everyone started to get hooked, they will start boosting prices.

At this rate, it's Google's game to lose, cause it's the only company that can afford to blow billions over the next few years to win the AI race. Expect prices to go up on every model, multiple times (while associated token levels for each tier drop)

Especially with the (absolutely correct) pushback against data centers, this is only going to get worse...
 
  • Like
Reactions: Vochi
Especially with the (absolutely correct) pushback against data centers, this is only going to get worse...
Have to keep in mind there are ulterior motives here too. China has a lot to gain by slowing down US progress on AI, so naturally China-linked groups are helping fuel the narrative and stoke the anti-data center flames across social media.

And it's pretty ironic watching some of these city council meetings and hearing concerned residents read clearly AI-written speeches about how much they oppose AI. :egads:
 
Have to keep in mind there are ulterior motives here too. China has a lot to gain by slowing down US progress on AI, so naturally China-linked groups are helping fuel the narrative and stoke the anti-data center flames across social media.

And it's pretty ironic watching some of these city council meetings and hearing concerned residents read clearly AI-written speeches about how much they oppose AI. :egads:
DUDE YES! We were laughing about that the other day - literally every prepared speech about them I've seen is obviously written by AI - and they just don't get how obvious it is!
 

✨ AI Highlights

The thread reacts to OpenAI's new pricing tiers, ranging from $8 to $500 per month, with discussion centering on what this means for in-house builders and bootstrapped developers who benefited from subsidized early access. The consensus is that all major LLM providers are hemorrhaging money and price hikes are inevitable, signaling the end of the low-cost AI development window. Greg Gifford's point that this is loss mitigation rather than profit-seeking — combined with Joe Pistell's firsthand experience of rising costs — offers the clearest takeaway for dealers weighing AI investment strategies.

Replies Views 6 1,692 Started Last Reply