ChatGPT for $44? Why are they increasing the price 😳

Most people aren’t paying $20 for ChatGPT Plus when there are cheaper options that offer access to all LLMs.

But now, OpenAI is eyeing a price hike to $22 by the end of 2024 and a staggering $44 by 2029.

So, what’s driving these costs? Let’s dive into the real price of running AI models and explore other spicy AI stories making waves right now.

In today’s post:

• OpenAI’ ChatGPT price model

• Runway’s funding 100 AI films with $5 investment

• Learn vocabulary from movies with Wordy new tool

• Extra: Trending AI tools, Giveaway, and prompts

OPENAI UPDATE

$44 a Month for ChatGPT?

Let’s Talk About What’s Going On

OpenAI is reportedly planning to increase the price of ChatGPT subscriptions significantly over the next few years, driven by financial pressures and investor expectations.

Here’s what you need to know about the potential price hikes and their impact.

Key Points: ChatGPT Price Increase

• Immediate Price Hike: According to internal documents obtained by The New York Times, OpenAI plans to raise the monthly cost of ChatGPT Plus from $20 to $22 by the end of this year.

• Long-Term Plans: By 2029, OpenAI expects to charge $44 per month for ChatGPT Plus, a steep increase that reflects the company’s need to narrow its losses and improve financial sustainability.

• Financial Strain: Despite reaching $300 million in monthly revenue as of August 2024, OpenAI is projected to lose approximately $5 billion this year. The high costs of maintaining and developing AI models, along with staffing and operational expenses, are key factors driving these losses.

• Operational Costs: At one point, ChatGPT’s operational costs were reportedly as high as $700,000 per day, highlighting the significant resources required to support the AI’s widespread use.

Why is OpenAI Raising Prices?

• Investor Pressure: OpenAI’s investors are pushing for improved financial performance, urging the company to reduce its losses. Price hikes are part of a broader strategy to boost revenue and offset operating costs.

• High Expenses: From costly AI training infrastructure to office space and personnel, OpenAI’s expenses are substantial, contributing to its financial challenges.

As OpenAI faces mounting financial pressure, the company’s strategy includes significant price increases for ChatGPT subscriptions over the next five years. While this may help OpenAI’s bottom line, it remains to be seen how customers will respond to higher costs for accessing one of the most popular AI tools on the market.

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RUNWAY AI-GENERATED MOVIES

Have You Seen These Crazy AI Moves?

Here’s What’s Going Down.

Runway, an AI video generation platform, is investing big in the future of AI-driven filmmaking. To kickstart a new era of film production, the company has launched the Hundred Film Fund, budgeting $5 million to support up to 100 films that use its generative video technology.

Here’s a breakdown of what the fund offers and why it matters:

• Funding for AI-Powered Films: Runway is dedicating $5 million in cash and up to $2 million in service credits to filmmakers who incorporate its AI video model into their projects. The fund is open to a wide range of formats, including features, shorts, documentaries, experimental films, music videos, and more.

• Runway’s Head of Creative, Jamie Umpherson, stated that while the fund aims to support 100 films initially, there’s potential for the fund to grow to $10 million, allowing for even broader support.

• No Strings Attached: Unlike traditional film funding, Runway won’t claim ownership or control over the projects. Filmmakers are only required to provide biweekly updates and allow Runway to showcase the final results as part of its portfolio.

• Advisors like Tribeca co-founder Jane Rosenthal and musician will.i.am will help select projects, offering additional guidance and support to awardees.

Who Can Apply?

• Runway encourages both established and emerging filmmakers to apply, as the fund aims to spotlight unconventional and overlooked visions within the film industry.

• While some grants may reach up to $1 million, each project will be evaluated on its specific production requirements, ensuring a fair distribution of funds. Filmmakers can also apply for one of five “director residency” positions, although specific benefits remain undefined.

Would be signing up?

I’m interested.

WORDY NEW TOOL

Learning while you watch your favorite TV show

You might not know this but Wordy is a new language learning app that offers a unique way to improve your English vocabulary while watching your favorite movies and TV shows.

Here’s how Wordy works and what makes it stand out.

• Interactive Learning: Wordy integrates with over 500,000 titles, including popular shows like HBO’s “The Penguin” and Disney+’s “Agatha All Along.” It automatically translates and defines unknown words as you watch, allowing you to learn without interrupting your viewing experience.

• Real-Time Translations: Using AI, Wordy analyzes the subtitles of the selected episode, extracting and lemmatizing each word. It then syncs with your TV or computer audio using your phone’s microphone to track where you are in the episode. The app scrolls through the transcript, highlighting difficult words and providing instant translations.

• Custom Difficulty Levels: After each episode, Wordy provides a summary page that categorizes vocabulary by difficulty level, ranging from Beginner to Proficiency English. Users can review all the words from an episode and save challenging terms to their Library for later practice with digital flashcards.

What are the limits?

• English Only (For Now): Currently, Wordy is available only in English, unlike some competitors that support multiple languages. However, Bogyó plans to add Spanish in November, followed by French and German in the coming months.

• Quality Over Speed: Bogyó (the creator of Wordy) emphasizes quality in language integration, stating, “I prefer to maintain quality over rushing the process, so I’m taking the time to ensure each language integration meets my standards for accuracy and user experience.”

Pricing and Availability

• Subscription Costs: Wordy is available for $2.99 per month or $29.99 per year. The app is currently exclusive to iOS, with an Android version set to launch in November.

• A Growing Ecosystem: With ongoing language expansions and planned Android support, Wordy aims to become an essential tool for language learners seeking to expand their vocabulary in an engaging and practical way.

Install it here 😉

EXTRA:

TOOLS:

These are some of the most powerful and time-saving AI tools you can check out today:

• BeeBee AI: AI software for investors and traders to get insights

• MetaView: An tool to automate taking interview notes

• Pamefy: A tool for debt collection

• FinChat: AI tool that generates accurate answers and provides reasons and sources for question

• Bloge AI: A tool to write SEO optimized blogs

Discover more tools here…

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