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Good point, very possible that Altman is excluding free tier as a marketing cost even if it loses more than they make on paid customers. On the other hand they

by dcre 1y ago

Good point, very possible that Altman is excluding free tier as a marketing cost even if it loses more than they make on paid customers. On the other hand they may be able to cut free tier costs a lot by having the model router send queries to gpt-5-mini where before they were going to 4o.

DenisM 1y ago
Free tier provides a lot of training material. Every time you correct ChatGPT on its mistakes you’re giving them knowledge that’s not in any book or website. Thats a moat, albeit one that is slow to build.
- dcre 1y ago
  That's interesting, though you have to imagine the data set is very low quality on average and distilling high quality training pairs out of it is very costly.
  - DenisM 1y ago
    Hence exponential increase in model training costs. Also hallucinations in the long tail of knowledge.
jacurtis 1y ago
This is very true. ChatGPT has a very generous free tier. I used to pay for it, but realized I was never really hitting the limits of what is needed to pay for it. However, at the same time, I was using Claude much less, really preferring the answers from it most of the time, and constantly being hit with limits. So guess what I did. I cancelled my OpenAI subscription and moved to Anthropic. Not only do i get Claude Code, which OpenAI really has no serious competitor for. I still use both models but never run into problems with OpenAI, so i see no reason to pay for it.