TechAI's pricey reality: Microsoft's ChatGPT costs a staggering $700k per day to operate

AI's pricey reality: Microsoft's ChatGPT costs a staggering $700k per day to operate

ChatGPT and dollars
ChatGPT and dollars
Images source: © Pexels

7:29 AM EST, January 21, 2024

Artificial intelligence is among the hottest topics this year in the technology industry, and it's not difficult to see why. ChatGPT stands out as one of the top AI tools. However, implementing machine learning models on such a massive scale carries considerable expenses. So what exactly are these costs?

Just how costly is ChatGPT every day? The price is steep

Every question you pose to ChatGPT costs an average of 36 cents. This equates to around $700,000 daily and nearly $750,000 each day the tool operates. According to Dylan Patel, the chief analyst of research firm SemiAnalysis, these statistics are. Of course, these are average values - the final amounts largely depend on the complexity of the inquiries.

These high expenses are tied to the process of generating responses. The artificial intelligence must sift through vast resources and attempt to craft "original" content. To generate naturally flowing reactions on such a large scale, the purchase and maintenance of an extensive amount of graphics cards are required.

This is why Microsoft aims to produce its own AI chips

Windows Central states that this is likely why Microsoft is contemplating creating its chips to meet AI demands. This could reduce the company's dependence on Nvidia, whose chips currently form the backbone of the ChatGPT infrastructure, and subsequently cut costs significantly.

Microsoft is currently leading the AI race, thanks in part to its partnership with OpenAI, the developers of ChatGPT. This tool provides a foundation for artificial intelligence in Bing's search engine, making content search much more accessible.

Additionally, ChatGPT aids in content creation in the Office package and summarizing tasks in the Edge browser. Ultimately, it is set to form the foundation of the Windows 12 system, aiming to transform how we interact with computers. The system is designed to function as a personal assistant in the most total sense of the word.

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