How ChatGpt Earns Money Despite Free Offerings? Success Story, Business Model & Revenue Model

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Journey of ChatGPT


The introduction of ChatGPT has changed the usage of various language processing tools which are driven by AI technology. In fact, this AI tool has redefined the standards of Artificial Intelligence in today’s fast-paced world.

One of the famous chatbots in today’s world is ChatGPT which was developed by OpenAI. This chatbot was launched on 30th November 2022 by the same company. 

After the launch of ChatGPT, it did not take much time for this tool to gain popularity. Soon after this tool was launched, it went viral on various social media platforms only because of its usage capabilities. Many social media stars shared the capabilities of ChatGPT and what complex work could be done using this platform. 

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One would surely not believe that ChatGPT had surpassed one million users after just five days of its launch. The stories shared by various popular social media stars included everything from travel planning to planning your career journey. The buzz of using ChatGPT for anything already started five days after its launch. 

Within two years, ChatGPT has achieved major milestones. In July 2023, the founder of this tool launched their first ChatGPT application on the Play Store and Apple Store. Currently, ChatGPT has 100+ million users of their application and their official website has nearly 1.5 billion visitors per month.

Yes, these are some amazing and unbelievable figures that ChatGPT is receiving to date and they are expected to increase by coming few years. 

Now, ChatGPT was available for free until February 2023. Due to its huge demand in the online market, the founder of this tool released ChatGPT Plus membership which was being offered at $20 per month. Opting for this membership gave users more options to work very easily with ChatGPT.

Members of this plan benefitted with very less factual mistakes. But, this does not mean that getting a membership of ChatGPT Plus gave them accurate facts or details. If you are into serious work then double-checking all the facts and figures again is a very important step.

One of the greatest advantages that members got was access to GPT 4. One would know that GPT-4 is quite smarter and better as compared to its predecessors. It comfortably supports longer requests and conversations which are made by humans on the ChatGPT platform.

This updated system from ChatGPT learns faster and it can track more complex problems in a very short time. 

Business Model of ChatGPT

Many users of ChatGPT will surely wonder how the creators of this product are making money. There is a proper system behind their money-making from ChatGPT. Now, the business model of ChatGPT relies on the strategic partnerships that enable its AI model to reach as many audiences as possible. 

In January 2023, Microsoft confirmed a $10 billion investment into ChatGPT. Microsoft being one of the top technology corporations in the world has invested in ChatGPT to improve in the areas of supercomputing systems.

Additionally, they also wanted to get a taste of new AI-powered experiences that are going on in the world. Microsoft is OpenAI’s exclusive cloud provider. 

This is how businesses using their services are improving customer experience, a significant increase in operational efficiency, pricing strategy, and great competitive strategies. Some of the top businesses that use ChatGPT services are Snapchat, Microsoft, Google, Slack, and many more. 

The next method of how ChatGPT’s business flows is through its subscription plans. Now, the subscription plans are not only made for individuals but, it is also greatly designed for businesses to use. In fact, the subscription plan offered by ChatGPT is best for small businesses that need advanced AI features and capabilities. 

Some of the amazing and unique features and capabilities that are unlocked when a ChatGPT subscription is taken are the following:-

  • You simply get access to much better and larger language models which have many advanced language processing capabilities 
  • You get much more precise and accurate results when you get access to its subscription model 
  • You get the access and ability to train the language model on specific datasets and can use cases 
  • There is full customisation option made available to all members of ChatGPT
  • Consistent access to ChatGPT at any time and anywhere is guaranteed to members 
  • Automation 
  • You can use various ChatGPT plugins as per your need

Businesses who uses ChatGPT mostly embeds ChatGPT-powered chatbot on their website or business app. This automatic chatbot helps solve basic problems and ultimately saves a lot of time. Businesses also use ChatGPT to automatically audit and summarise significant information. 

Revenue Model of ChatGPT

There are various revenue models from where ChatGPT earns huge amounts of money from the world. Interestingly, the huge demand of their services have made the creator to put some subscription plans to the platform. Today, ChatGPT is available for both free and membership users. Now, here are several methods how ChatGPT is making money:-

Providing API Services to businesses 

In the above paragraphs we have already spoken about what is API services and their significance of it. This is one of the prime methods of how ChatGPT earns money. They simply sell this service to potential businesses around the world and charge some amount from the businesses in return. 

Subscription plan

ChatGPT now charges a small subscription fee to potential customers and small businesses as well. They most-taken subscription plan is $20. In fact, it is the only membership plan made available from the parent company to users. When taken users can enjoy an array of benefits from this membership. 

Selling of training datasets

ChatGPT sells training datasets to many businesses and researchers around the world. These datasets are used to train machine learning models which also include language models like ChatGPT. 

Sponsorships and partnerships 

ChatGPT is very active in sponsoring various significant events around the world. It charges a good amount of money from the event owner and that becomes one of the greatest sources of income. 

Another way this platform makes money is by partnering with other brands or companies in the world. 


One of their most effective methods of earning money is through advertisements. ChatGPT rigorously advertises on various social media platforms, websites, and applications as well. 

OpenAI in consideration with ChatGPT is earning by granting donations and strategic partnerships. Yes, these are some of the basic streams of how OpenAI is making revenue in relation to ChatGPT. 

But, one of the major and most effective sources of earning is by selling API access. This method is also used by ChatGPT to earn from other businesses from around the world. 

Just like ChatGPT, OpenAI earns additional revenue or money by offering API services to potential clients and companies. Interestingly, OpenAI uses a Pay-As-You-Go pricing model for all of its clients and users. 

In this pricing model, the users and clients who have used their services will only pay for the API requests they use. It is a very smart process of earning and charging money from clients and users. 

Success Story: Applications of ChatGPT

Here are the success stories of various applications of ChatGPT:-

Customer Service 

“The customer service of ChatGPT is excellent.”

“Customer support helps you categorize the information it gives you and it further helps users to sort the information”


“It was incredibly helpful in getting information and explanations on various topics on this platform.”


“What I like most about ChatGPT was its ability and capability to provide quick and accurate answers in a very short time.” 


Ever since ChatGPT was introduced in the world, life has become much easier. In the same manner, due to its very high demand in the world market, the creator is earning enormously. All the credit for such goes to its accurate results, reliability, user-friendly interface, and of course the minimal subscription fee.

These are some effective features available on ChatGPT that are attracting so many users every day. Although there are so many people around the world who have never used ChatGPT, I would personally request them to try it at least once.

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