Overview of the New Feature

OpenAI is testing a new feature that allows users to register for ChatGPT using just a phone number, without needing an email address. This feature is currently in beta testing in the U.S. and India, aimed at simplifying the sign-up process for new users. However, there are limitations that come with this option, particularly regarding account upgrades and multi-factor authentication.

Key Details

  • Users who sign up with a phone number cannot upgrade to paid plans like ChatGPT Plus or Pro without first verifying their email.
  • Multi-factor authentication is not available for accounts created with only a phone number.
  • Once a phone number is registered, it cannot be used to create additional accounts.
  • OpenAI warns that using recycled phone numbers can lead to errors, with no immediate workaround available until a future update planned for 2025.
  • Currently, there are no plans to extend this feature beyond the U.S. and India.

Significance of the Change

This new sign-up option reflects OpenAI’s strategy to attract more users by reducing barriers to entry. With over 300 million weekly users, OpenAI is focused on expanding its reach. However, despite significant user engagement and expected revenues of $3.7 billion in 2024, the company is still facing financial challenges. OpenAI has incurred substantial losses, prompting discussions about raising subscription prices and exploring usage-based pricing models. This move to simplify sign-ups could help OpenAI enhance its user base and ultimately work toward profitability.

Source.

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