ChatGPT went free in August, forcing paid plans to shift toward advanced features. The move subsidizes consumer users with profits from enterprise and government contracts, while improving compute efficiency lets providers lower costs over time.
ChatGPT is making things free. Their new free tier just got unlimited. The change took effect in August. So this means that you can cut your business plan pricing and put capable AI tool. And it looks like they're starting to then adjust the $20 plans into higher order efforts like agentic marketing or agentic efforts and things like that. What do you think about this? Kind of, is this the cost of AI coming down or what do you think this means?
Yeah. What I, so, you know, at first I always look at these things like, oh, it's marketing, it's competition, right? It's like all the work we've done over our careers in pricing strategy. But when you really start to think about it and you really start to dig into all these different models across all the frontier models and platforms, you start to realize, oh, they're zeroing in on these types of businesses only really need this much compute. And this type of compute, and these types of individuals only need this much compute and that type of compute. And frankly, we can subsidize that with the bigger work that we're doing across enterprises and governments and what have you. And so, hey, it's totally fine to have it free and get that user base going. It's totally fine to drop the prices on some of these things. So I think this will become much more refined over time. Very much like I use like 3D printing software and some other things for hobbies that I do. And they're incredibly good at changing month by month. Here's how many tokens you're actually using, so you get a cheaper price now because you don't really cost as much as we thought a year ago.
