OpenAI tests phone number-only sign-ups
OpenAI has begun testing a new feature that will allow new ChatGPT users to sign up using only their phone number, eliminating the need for an email address.Tibor Blaho, a software engineer, first spotted the update, which is currently in beta in the United States and India.
While the feature makes registration easier, it is not without limitations. Users who create accounts using their phone numbers are unable to upgrade to paid plans such as ChatGPT Plus or ChatGPT Pro unless they verify their accounts via email. Furthermore, multi-factor authentication is not possible without a valid email address, and once a phone number has been used to create an account, it cannot be used to register another one.
OpenAI has acknowledged that errors may occur when using recycled or reused phone numbers. According to the company's new Q&A page, there is no current workaround, but a system update to address the issue is scheduled for 2025. OpenAI also confirmed that it does not intend to expand the phone number-only sign-up feature to other regions at this time.
This initiative is part of OpenAI's larger effort to lower the barriers to using ChatGPT and attract more users. In December, the company launched a free phone-based ChatGPT experience for US users, with 15 minutes of usage per month. Around the same time, it released a bare-bones version of ChatGPT on WhatsApp, limiting users to a certain number of daily exchanges.
Despite having over 300 million weekly users and generating billions in revenue, OpenAI is far from profitable. According to CNBC, the company expected $3.7 billion in revenue in 2024 but lost an estimated $5 billion during the same fiscal year. The losses are due to the high costs of office rent, staffing, and AI training infrastructure.
To address these financial challenges, OpenAI is looking into price increases for its subscription tiers and usage-based pricing for specific services. CEO Sam Altman recently admitted that his company is losing money on its most expensive subscription plan.
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