OpenAI pricing: Features and plans explained

Contrary to popular belief, OpenAI’s innovations span far beyond text-based AI. Their pricing structure reflects a balance between accessibility and cutting-edge research. This key factor makes it adaptable to businesses and developers alike.

In this guide, we’ll take a deep dive into OpenAI pricing. We’ll also explore its features, and what makes their plans unique.

You’ll also learn:

• What OpenAI is and how it works.
• The features that distinguish OpenAI from other AI companies
• A detailed breakdown of OpenAI pricing plans and add-ons
• Which companies benefit most from OpenAI’s pricing structure
• How to build a pricing model inspired by OpenAI with the help of Orb

Let’s begin by exploring what OpenAI is and how it works.

What is OpenAI?

OpenAI, established in 2015, is a prominent AI research and development organization. 

Originally structured as a hybrid entity combining a non-profit and a for-profit subsidiary, the OpenAI company has since begun shifting to a more traditional for-profit model to support its growth and innovation goals. 

OpenAI's pricing model reflects its dual objectives of advancing AI research and ensuring accessibility. We’ll touch upon the topic of OpenAI’s pricing after we explain its features. 

How does OpenAI work?

OpenAI operates by providing advanced AI models. But contrary to popular belief, ChatGPT isn’t their only product. Here's an overview of its key features and how they function:

• GPT models for text: OpenAI’s GPT models, like GPT-4, power applications in content creation, code generation, and translation. Users interact with these models via APIs or ChatGPT, with OpenAI costs depending on the level of access and usage.
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• DALL·E for visuals: DALL·E generates high-quality images from textual descriptions. Its advanced features, like inpainting, allow for detailed edits.
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• Whisper for speech: Whisper is OpenAI's speech recognition model. It offers accurate transcription and translation services. It’s widely used in accessibility tools and real-time communication.
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• Sora for video: Sora, OpenAI's text-to-video model, lets users create dynamic short videos from simple prompts. It promises to expand possibilities in digital storytelling and advertising.
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• APIs for custom integration: OpenAI’s APIs lets businesses integrate AI capabilities into their own apps. They offer flexibility while controlling OpenAI costs based on usage tiers.

What are the OpenAI pricing plans? 

OpenAI offers a range of pricing plans tailored to individual users, teams, enterprises, and developers. Here's a breakdown of the current options:

ChatGPT plans

Let’s start by looking at OpenAI’s flagship product:

• Free plan: Provides access to ChatGPT with standard features. Ideal for casual users exploring AI capabilities.

• ChatGPT Plus: Priced at $20 per user per month, this plan includes general access to ChatGPT, even during peak times. Users also get faster response times and priority access to new features and improvements.
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• ChatGPT Pro: At $200 per user per month, Pro subscribers receive unlimited access to the latest models, including GPT-4 and o1. There's also Advanced Voice mode and users get more computational power for complex tasks.
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• ChatGPT Team: Designed for collaborative environments, this plan costs $30 per user per month (or $25 per user per month with annual billing). 
  It offers a dedicated workspace and administrative tools for team management. Users also get access to the latest OpenAI models.

• ChatGPT Enterprise: It’s tailored for large organizations requiring over 149 licenses. This plan provides enterprise-level privacy and data analysis capabilities. Users also enjoy better performance and customization options. Pricing is only disclosed in custom quotes.

API pricing

Developers can integrate OpenAI's models into their apps through APIs, with costs based on usage. As of December 2024, OpenAI's pricing reflects updated models and rates:

• GPT-3.5: The new o1-preview model is priced at $15.00 per 1 million input tokens and $60.00 per 1 million output tokens.
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• GPT-4: Updated pricing includes the gpt-4o-2024-08-06 model at $3.75 per 1 million input tokens and $15.00 per 1 million output tokens.
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• DALL·E: Image generation pricing now reflects updates, with models such as text-embedding-3-large priced at $0.13 per 1 million tokens.
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• Whisper: Audio processing rates have changed; for instance, the gpt-4o-realtime-preview model processes audio input at $100.00 per 1 million input tokens.

Note: Tokens are chunks of text. 1,000 tokens roughly equate to 750 words. API usage is billed separately from ChatGPT subscriptions.

Sora access and pricing

Sora, is available to ChatGPT subscribers with the following access levels:

• ChatGPT Plus subscribers: For $20 per month, users can generate up to 50 videos monthly at 480p resolution. There's also an option for fewer videos at 720p quality.
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• ChatGPT Pro subscribers: At $200 per month, subscribers enjoy improved capabilities, including higher resolution options and longer video durations.

OpenAI plans to introduce specialized pricing tiers for Sora in early 2025. 

Extra considerations

• Nonprofit discounts: Eligible nonprofits can receive a 20% discount on ChatGPT Team subscriptions and a 50% discount on ChatGPT Enterprise plans.
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• Educational plans: ChatGPT Edu offers advanced capabilities and administrative controls for universities, with pricing tailored to educational institutions.

OpenAI pricing reflects a balance between accessibility and the delivery of advanced AI features. Whether you're exploring GPT 3.5 pricing or integrating APIs, there's a plan for virtually every need.

OpenAI's pricing structure is best for these types of companies 

The flexibility in OpenAI pricing allows businesses to select plans that align with their specific needs and budgets. Let’s zoom in and see who benefits the most from OpenAI’s pricing structure.

Startups and small businesses 

Startups and SMBs benefit from OpenAI's scalable pricing. It enables them to integrate AI capabilities without upfront costs. The pay-as-you-go model for API usage also helps companies make sure that they only pay for what they use.

Medium to large enterprises 

Companies with higher demands can leverage plans like Plus, Team, or Enterprise. These plans offer better features and priority access. These features align with the operational needs of larger organizations. 

Nonprofits 

These types of companies are offered discounted rates. Because of that, AI tools are more accessible to organizations focused on social good. This aspect of OpenAI pricing demonstrates the company's dedication to guaranteeing that AI benefits all sectors of society.

How to build your own pricing model like OpenAI

Developing a pricing model akin to OpenAI's involves several strategic steps:

• Understand your market: Conduct thorough research to pinpoint your target audience and their willingness to pay. This insight helps make sure your pricing aligns with customer expectations.
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• Define value propositions: Clearly outline the unique benefits your product offers. This clarity helps in setting prices that reflect the value provided.
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• Create tiered offerings: Develop multiple pricing tiers with varying features OpenAI's Free, Plus, and Pro plans as an example of this in practice. This approach caters to different customer segments and budgets.
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• Implement usage-based pricing: For API services, consider charging based on usage metrics like tokens or API calls. You can mirror OpenAI's pricing structure, allowing customers to pay proportionally to their usage.
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• Offer enterprise solutions: Provide customized plans for large organizations. Throw in some extra features and dedicated support, as seen in OpenAI's Enterprise offerings. Tailoring solutions for enterprise clients can address their specific needs.
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• Provide discounts: Introduce special pricing for nonprofits and educational institutions. This way, you’re making your solution more accessible. You’d also be reflecting OpenAI's commitment to broader societal benefits.
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• Regularly review and adjust: Continuously assess your pricing model's performance. Then, make necessary adjustments based on market feedback. Staying responsive helps confirm your pricing remains competitive and fair.

Orb can support your OpenAI-like pricing structure

OpenAI has set a benchmark with its pricing models. As we’ve explained, they offer scalable, tiered options that cater to a wide range of customers. If you've ever wondered how to craft a pricing structure as adaptable OpenAI pricing, Orb is the tool to make it happen.

Orb is a done-for-you billing platform. It’s designed to help you build, manage, and evolve pricing models effortlessly. Just as companies like Perplexity and Vercel rely on dynamic pricing to meet user demands, Orb helps businesses create systems that are innovative and reliable.

Here’s how Orb helps:

• Connect usage to billing: Accurate billing starts with accurate data. Orb automatically links product usage to billing in real-time. Whether you're billing by tokens, time, or events, Orb makes usage-based pricing easy to implement.
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• Offer custom pricing tiers for every audience: Orb enables you to create tiered pricing options that resonate with your audience. Build flexible plans that scale with your customers, so you cater to both startup and enterprise clients alike.
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• Adapt pricing as your business grows: With Orb, you can test, tweak, and launch new pricing models without disrupting your business. Whether you need to migrate customers to updated plans or use volume discounts, Orb lets you iterate confidently.
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• Use data to refine your pricing: Orb’s reporting tools help you uncover patterns in customer behavior and usage. By leveraging this data, you can fine-tune your pricing structure to better match customer needs.
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• Integrate with ease: Orb plays well with your existing tools, from data warehouses to payment gateways. This integration guarantees your pricing operations are synchronized across teams and systems, reducing bottlenecks. 

Ready to design a pricing engine that scales like OpenAI's? Orb provides the tools to track usage, test pricing strategies, and evolve your model with ease. 

Take control of your financial operations and build pricing models that drive growth. If you’re ready to elevate your pricing strategy, get in touch with Orb today.