How Does ChatGPT Make Money? - Explore ChatGPT Revenue Model

How Does ChatGPT Make Money

Artificial Intelligence (AI) has been the forerunner of digital evolution in the transforming digital world. One of the most common free products available to multiple users is ChatGPT 3.5. ChatGPT, the AI language model developed by OpenAI, has become immensely popular for its ability to generate human-like text and assist users in various tasks. As the usage of ChatGPT continues to grow, many wonder: How does ChatGPT make money?

Let's dive in.

How Does ChatGPT Make Money? - Monetization Strategy

Creating a large language model (LLM) as intelligent as ChatGPT is expensive. Open AI cannot make the service available for all without charging any fees from their user. Let us gather a deeper understanding of how ChatGPT makes money by providing free services to multiple users.


1. Offering Premium Subscription Model

One of the primary revenue streams for ChatGPT is its paid subscription model.

ChatGPT has a range of functionalities, but not all are free! A premium version is available for users who want the most advanced features. These features include access to additional tools like DALL-E-3, browsing, advanced data analysis, and use of GPTs.

The premium ChatGPT subscription gives access to GPT-4, which is by far the most advanced model.

ChatGPT subscription begins at $20 monthly for Plus and $25 for Team.


2. By Providing API Services to Businesses

API stands for “Application Programming Interface”, which helps a software contact its server in the back end. Contacting the back-end server results in the execution of some special functions which it is meant to perform.

With that said, ChatGPT provides API services in return for a cost. The businesses benefit by increasing the functionality of their application using such API in their software products. Some examples where ChatGPT API is actively helping to increase functionality are Microsoft, Google, and Salesforce.

3. Selling Training Datasets

Training datasets consist of text samples gathered from various sources across the internet. Common sources for ChatGPT's training data include Wikipedia, books, and publicly accessible web pages.

Since ChatGPT operates as a Language Learning Model (LLM), its operational model can be replicated to create other AI-LLM models. Consequently, ChatGPT sells its training datasets to developers and companies seeking to harness AI-powered LLM tools to streamline their operations.

By selling training datasets, ChatGPT generates revenue and contributes to developing a broader AI ecosystem, fostering further research into Language Learning Models.

4. Advertising

Advertisements are one of the easiest ways for ChatGPT to make money from its operations. ChatGPT displays advertisements within the conversation, similar to how websites and mobile apps monetize their ads. Advertisers pay the chatbot owner to promote their products or services to the users.

Note* - If you are a chatbot developer, now you can monetize your chatbot and earn up to $1,000 monthly by placing ads on your chatbot. Monetizebot is a platform that allows you to generate revenue from your chatbots; with every click on the ad, you get paid.

5. Partnerships


One of the primary ways ChatGPT generates revenue while providing free services is through developing data partnerships. Open AI aims to work together with organizations to create open-source and private datasets for AI training.

Open AI is looking for partners who want them to teach AI to understand the world better and be helpful to everyone.

6. Sponsorships

Sponsorships function similarly to advertisements on their website or social media channels. ChatGPT offers sponsored content on its website or social media channels to increase the reach of its clients.

The sponsored content from the companies is published on their website in exchange for a fee. These fees are a part of their revenue for continuing operations without any hassle.

7. Language Processing Consulting

Another avenue of revenue for ChatGPT is through consultation services. The idea for consultation is simple and involves providing solutions to other businesses in their endeavours to develop AI chatbots. Moreover, they are also known to provide language processing development services and their implementation.

ChatGPT also provides solutions for staff training and education on language training models. All these services are offered in exchange for a fee, helping to generate revenue for their operations.

So, how much money does ChatGPT make by offering such services?

A recent report states that ChatGPT has made $1.6 billion in revenue using its products and services. Furthermore, Microsoft valued ChatGPT at $29 billion during its $10 billion funding round. Previously, the company was valued at only $20 billion in December 2022.

Can I Also Make Money Using ChatGPT?

Yes, there are multiple ways you can make money using ChatGPT. Here are some of the popular ways which a lot of people are using to make money online using AI and ChatGPT:

  • Build AI chatbots and monetize them.
  • Build an app or website.
  • Become a freelance content writer.
  • Write e-books and sell them online.
  • Become a prompt engineer.
  • Create logos, graphics, and artwork and sell them on online platforms.


Running a Language Learning Model like ChatGPT without monetary support is difficult. ChatGPT leverages diverse revenue streams, including a premium subscription model, enterprise solution, advertising and partnerships, while offering a free model - ChatGPT 3.5 to all its new and existing users.

ChatGPT sustains its operations and looks after new innovation and growth. ChatGPT will remain poised to explore new avenues of revenue generation as the technology advances and the needs of users advance.


1. How are people making money with ChatGPT?

AI has allowed many freelancers and AI enthusiasts to make money using ChatGPT. With ChatGPT, people create SEO-optimized content, design and build websites, do affiliate marketing, and sell their services to companies or businesses looking for a fixed price.

2. How do AI chatbots make money?

AI Chatbots make money through various monetization strategies that include:

  1. Pay-per-use model
  2. Subscription model
  3. Advertisements using
  4. Affiliate marketing using AI affiliate programs
  5. Customized solutions and services to businesses/enterprises
  6. Lead generation

3. Can I make money with AI tools?

Yes, you can use AI tools to make money online. You need to find clients who understand their query and generate prompts. The prompt must be specific to the client's requirements for generating content, codes, design, etc.

4. Are there any plans for ChatGPT to introduce new revenue streams in the future?

ChatGPT continuously evaluates opportunities to expand its revenue streams and may introduce new initiatives in the future.

Author - Aditya is the founder of He has over 10 years of experience and possesses excellent skills in the analytics space. Aditya has led the Data Program at Tesla and has worked alongside world-class marketing, sales, operations and product leaders.