ChatGPT may feel free to users, but running one of the world’s most widely used AI platforms comes at an enormous cost. With an estimated 800–900 million weekly users — most on the free tier — OpenAI is reportedly burning around $17 billion annually to power the infrastructure behind its models. Even simple prompts trigger complex computations across thousands of high-performance chips. Earlier estimates placed ChatGPT’s daily operating cost at about $700,000, but that figure is now considered outdated as newer models, multimodal features, enterprise usage and massive user growth have sharply increased expenses.
Every response generated by AI requires computing power, energy and specialised hardware. As OpenAI rolled out more advanced models, voice and image capabilities, and developer APIs, inference costs multiplied dramatically. At global scale, even small interactions add up to a huge electricity and infrastructure footprint.
Despite rapid revenue growth, the economics remain challenging. The company reportedly does not expect to become profitable until around 2030.
From non-profit to capital-intensive AI giant
Founded in 2015 as a non-profit, OpenAI shifted to a capped-profit structure to attract the billions needed for advanced AI research. Major investments from companies such as Microsoft — alongside backing from large investors — helped fuel expansion. By late 2025, OpenAI’s valuation approached $500 billion, with IPO discussions reportedly underway for the coming years.
Ownership is now split between the original non-profit entity, strategic partners and employees/investors, reflecting the capital demands of building large-scale AI systems.
OpenAI’s revenue model combines multiple streams:
By 2025, annualised revenue reportedly exceeded $20 billion, yet infrastructure spending continues to outpace income.
The bigger question: sustainability
With hundreds of millions of users relying on free AI, the core challenge is sustainability. Massive compute requirements mean free access is effectively subsidised by paying customers, enterprise usage, investors and future capital strategies.
Source: India Latest News, Breaking News Today, Top News Headlines | Times Now
