OpenAI has begun testing a new feature that allows new ChatGPT users to sign up using only a phone number, bypassing the need for an email address.
The update, currently in beta in the U.S. and India, was first spotted by software engineer Tibor Blaho.
While the feature offers a simplified registration process, it comes with notable restrictions. Users who create accounts using their phone numbers cannot upgrade to paid plans like ChatGPT Plus or ChatGPT Pro without verifying their accounts via email. Additionally, multi-factor authentication is unavailable without a valid email, and once a phone number is used to create an account, it cannot be reused to register a new one.
OpenAI has acknowledged the potential for errors with 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 this issue is planned for 2025. OpenAI also confirmed it has no plans to expand the phone number-only sign-up feature to other regions at this time.
This initiative is part of OpenAI’s broader effort to reduce barriers to accessing ChatGPT and attract more users. In December, the company introduced a free phone-based ChatGPT experience for U.S. users, offering 15 minutes of usage per month. Around the same time, it launched a bare-bones version of ChatGPT on WhatsApp, limiting users to a set number of exchanges daily.
Despite boasting over 300 million weekly users and generating billions in revenue, OpenAI is far from profitability. According to CNBC, the company projected $3.7 billion in revenue for 2024 but incurred an estimated $5 billion loss during the same fiscal year. The losses stem from high costs associated with office rent, staffing, and AI training infrastructure.
To address these financial challenges, OpenAI is exploring potential price increases for its subscription tiers and considering usage-based pricing for specific services. CEO Sam Altman recently admitted that the company is losing money on its highest-priced subscription plan.
