Spotted by software engineer Tibor Blaho, the feature is currently in beta testing in the US and India, with some notable limitations.
While phone number-only accounts provide easier access to ChatGPT, they come with restrictions. Users must verify their accounts with an email address to upgrade to paid plans like ChatGPT Plus or Pro. Multi-factor authentication is also unavailable for phone-only accounts, and numbers linked to one account cannot be reused to create new ones. OpenAI has acknowledged that recycled or reused phone numbers can lead to errors, with no immediate workaround beyond contacting support or waiting for a system update expected in 2025.
This feature is not planned for expansion beyond the US and India, according to OpenAI.
The move reflects OpenAI’s efforts to lower barriers for accessing ChatGPT and broaden its user base. In December, the company introduced features such as phone-based access in the US, offering 15 minutes of free usage per month, and basic ChatGPT integration with WhatsApp, which limits the number of daily exchanges.
Despite ChatGPT’s massive user base of over 300 million weekly active users and projected 2024 revenue of US$3.7 billion, OpenAI is still far from profitability. The company reportedly lost US$5 billion in fiscal year 2024 due to high expenses, including staffing, infrastructure, and AI training costs, despite raising US$6.6 billion last year.
To address financial pressures, OpenAI is exploring ways to increase revenue, including potential price hikes for subscription tiers and introducing usage-based pricing for specific services. CEO Sam Altman has acknowledged that the company is losing money on its highest-tier plans, signaling the need for strategic adjustments as it scales.