Business · 4h ago
Why every major AI subscription costs $20 a month
OpenAI set the $20/month price for ChatGPT Plus in February 2023 to subsidize free-tier costs, not reflect product value. Competitors like Claude, Perplexity, and Google adopted the same price through anchoring rather than independent analysis. The price has held for years, even as capabilities expanded, but higher tiers at $200 and $100 are emerging for power users.
Meridian48 take
The $20 price point is a historical accident turned industry norm, but the real question is whether AI subscriptions will eventually fragment like streaming services.
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