OpenAI has officially launched ChatGPT Pro, a new subscription tier that provides users with unlimited access to its advanced AI models, including the full version of its o1 "reasoning" model, for a substantial $200 per month. This move marks a significant shift in the company's pricing strategy, with the new tier being 10 times more expensive than its existing ChatGPT Plus plan.

The o1 model, which was first previewed in September, has been upgraded to provide faster, more powerful, and accurate reasoning capabilities. According to OpenAI, the new version can reason about image uploads, a feature not available in the preview, and has been trained to be more concise in its thinking to improve answer times. Internal testing has shown that o1 reduces "major errors" on "difficult real-world questions" by 34% compared to the preview version.

While the o1 model will be available to all paid ChatGPT users, ChatGPT Pro subscribers will have access to an enhanced version, dubbed o1 pro mode, which "uses more compute for the best answers to the hardest questions." This premium feature is expected to produce more reliably accurate and comprehensive responses, especially in areas like data science, programming, and case law analysis. External expert testers have reported a 75% reduction in errors for easier coding competition questions using o1 pro mode.

In addition to unlimited access to o1 and o1 pro mode, ChatGPT Pro subscribers will also receive unlimited access to GPT-4 and Advanced Voice Mode, ChatGPT's human-like conversational feature. The company has also announced a grant program to award 10 grants of ChatGPT Pro to medical researchers at leading institutions, with plans to expand the program to other disciplines in the future.

The aggressive pricing move is seen as a response to pressure from investors to narrow OpenAI's losses. Despite reaching $300 million in monthly revenue in August, the company expects to lose roughly $5 billion this year, largely due to expenditures on staffing, office rent, and AI training infrastructure. ChatGPT alone was reportedly costing OpenAI $700,000 per day at one point.

The launch of ChatGPT Pro raises questions about the future of AI-powered chatbot platforms and their pricing strategies. With rumors of further price hikes, including a potential $44 per month cost for ChatGPT Plus by 2029, it remains to be seen how users will respond to these changes. One thing is certain, however: OpenAI is betting big on the value of its advanced AI capabilities, and it's willing to charge a premium for them.

As the AI landscape continues to evolve, it will be interesting to see how OpenAI's competitors respond to this move. Will they follow suit with their own premium subscription tiers, or will they focus on offering more affordable alternatives? Only time will tell, but one thing is clear: the AI chatbot wars have officially begun, and the stakes have never been higher.