Software vendors are moving away from fixed subscription fees and billing by usage or by results instead. According to a report, OpenAI is now doing the same, according to The Information.
Over the past few months, OpenAI has started giving some large customers the option to pay only once its AI actually finishes a task, such as handling customer support requests. That's according to The Information, citing a person with direct knowledge of the arrangements. The move hadn't been public before. An OpenAI spokesperson declined to comment.
OpenAI is adopting a model that startups pushed hardest. It's outcome-based pricing, where customers pay only when the AI works. Sierra and Fin, the latter now being acquired by Salesforce for $3.6 billion, charge only for tasks the AI completes without human involvement. The coding assistant Cognition promises corporate customers credits of up to $10 million if the software fails to deliver results worth at least as much as the price they paid. Older vendors like Adobe, HubSpot, and Zendesk are heading the same way.
Why the subscription fee is under pressure
There is some pressure on the AI companies to adopt such measures, as their products are expensive to run, and so far they haven't sped up revenue growth at software companies, according to The Information. At the same time, customers' IT budgets are strained by competing tools like Anthropic's Claude, which recently pushed harder toward billing by usage.
