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ChatGPT could cost over $700k per day to operate

businessinsider.com

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Re: ChatGPT could cost over $700k per day to operate

#141

Post by ebiester »

pluijzer wrote: post #51
pdksam wrote: post #12

Earlier quoted context omitted.

200k is too small, strong sde1s at Amazon get paid that much in hcol areas. Closer to 500k.

As a side, I am a bit shocked by these numbers. Is this an American thing? I understand myself to be good software engineer with good well rounded experience of 14+ years. Yet my income, in Europe, is really above 100k. What I am wondering, for those earning 500k, how big is your work load/stress. Would this be a 9-5 job you leave at the office when going home. Or does a job that earns so much consume your life?

Your standard of living might be comparable. Your retirement is taken care of, you have a reasonable amount of vacation, you have better job security, your health care, in most European countries, has much less hassle, and your property costs are lower.

I am seriously considering a move if my husband can find an academic job over there. The retirement won't be a great lure (fewer years in the system) but we almost have enough to coast from here, so it's about the rest.

Re: ChatGPT could cost over $700k per day to operate

#142

Post by Sohcahtoa82 »

pluijzer wrote: post #51
pdksam wrote: post #12

Earlier quoted context omitted.

200k is too small, strong sde1s at Amazon get paid that much in hcol areas. Closer to 500k.

As a side, I am a bit shocked by these numbers. Is this an American thing? I understand myself to be good software engineer with good well rounded experience of 14+ years. Yet my income, in Europe, is really above 100k. What I am wondering, for those earning 500k, how big is your work load/stress. Would this be a 9-5 job you leave at the office when going home. Or does a job that earns so much consume your life?

American SWE salaries can be insane, but I'm shocked at how low SWE salaries are in Europe.

I was expecting salaries to cool off a bit with the massive wave of layoffs across the industry, but from what I've seen, that hasn't happened.

Re: ChatGPT could cost over $700k per day to operate

#143

Post by tinideiznaimnou »

duncan-donuts wrote: post #25
jongjong wrote: post #17

My main concern with AI is that I'm not so sure if there is a market for any kind of intelligence anymore. So much human talent and intelligence has been wasted over the past few years; so many potentially useful projects went unfunded, I struggle to think of what purpose AI would serve in such an economic system as ours. I can see its potential, but I can't see our current system facilitating that potential. It seem…

I’ve never heard a more cynical AI take. There’s always a market for intelligence, whatever that means. The word intelligence is misleading anyway. No one said the AI needed to compete with the smartest person on the planet. It just needs to be smart enough to do some tasks that are “bullshit jobs”

>No one said the AI needed to compete with the smartest person on the planet. It just needs to be smart enough to do some tasks that are “bullshit jobs”

And then the smartest person on the planet figures out a better thing for the people who lost their "bullshit jobs" to do, right? No, gets sent to space to see how much even the smartest person on the planet really matters.

> There’s always a market for intelligence, whatever that means. The word intelligence is misleading anyway.

Agreed. What is decided here is to what extent there will continue to be a market for human intelligence. There are of course opportunity costs that humans who entered a market that they apparently believed to exist, will now have to, apparently, absorb. Or will we once again have to voluntarily undergo unsupervised radical mental restructuring - on the degree of your grandma having to learn how to navigate the Internet, and of her grandma presumably never having to do anything of the sort - and all that just to retain our Red Queen out of checkmate? It's always too early until it's too late.

>I’ve never heard a more cynical AI take.

Sapienti sat.

Re: ChatGPT could cost over $700k per day to operate

#144

Post by onlyrealcuzzo »

pc_edwin wrote: post #15

This might sound tone deaf but thats seems extremely cheap to me. It means the cost range for chatGPT is between $300m - $500m per year. If the 100m users is accurate, it means they only need to convert low single digit percentage to paying users to break even. Now it makes sense why they chose to charge $20/m, I predicted much higher.

The problem with this model is that if ChatGPT really is "good enough" now - many others will be "good enough" soon, and then it's a race to the bottom.

Re: ChatGPT could cost over $700k per day to operate

#145

Post by camgunz »

kylecazar wrote: post #90
BlackSwanMan wrote: post #81

Earlier quoted context omitted.

The cheap version does all of that much worse. I don't understand how people can be so cheap.

There are so many subscription products these days that it makes sense to assess the value of each carefully before committing. If you're like me you tend to forget you're paying for something, and have to do a yearly purge. It's very easy to slowly but surely rack up hundreds of dollars a month in subscription services.

I had a boss I didn't like a while ago, but one of the things he did that I did like was set a calendar reminder to unsubscribe. Too bad; it would've been easier on me mentally and emotionally if he were completely irredeemable, but I admit to using this trick myself now.

Re: ChatGPT could cost over $700k per day to operate

#146

Post by tedivm »

naikrovek wrote: post #129
xyst wrote: post #125

Earlier quoted context omitted.

That’s just on computing power. You are forgetting the human costs of ongoing development, maintenance of ChatGPT, power, SRE/operations, cooling costs, and et cetera. Now M$ is planning to create a specialized chip for AI which comes with its own R&D budget and ongoing costs. If it proves successful, ChatGPT will become a household brand and M$ could easily ask for $500 per month or more for professional/corporate u…

I like how you abbreviate "Microsoft" as "M$". It means you think of them without bias and with a clear head. /s

Seeing that brought me back to 2006.

Re: ChatGPT could cost over $700k per day to operate

#147

Post by dreadlordbone »

onlyrealcuzzo wrote: post #144
pc_edwin wrote: post #15

This might sound tone deaf but thats seems extremely cheap to me. It means the cost range for chatGPT is between $300m - $500m per year. If the 100m users is accurate, it means they only need to convert low single digit percentage to paying users to break even. Now it makes sense why they chose to charge $20/m, I predicted much higher.

The problem with this model is that if ChatGPT really is "good enough" now - many others will be "good enough" soon, and then it's a race to the bottom.

that's a feature not a bug

Re: ChatGPT could cost over $700k per day to operate

#148

Post by AraceliHarker »

moffkalast wrote: post #128
cft wrote: post #104

Earlier quoted context omitted.

Bing gives you much shorter answers, often without code examples

I'm sorry but I have to end this conversation, I have been a good Bing and you have been a bad user. Thank you for your cooperation. Goodbye.

Sydney's quick to get into a bad mood when you say something bad about AI.

Re: ChatGPT could cost over $700k per day to operate

#149

Post by nkohari »

Dave3of5 wrote: post #9

Interesting numbers. That roughly equates to about $250 million per year plus I don't know how much training is costing them to keep the model up to date and suchlike. The company also has about 375 employees. I've no idea how much they get paid but I used $200k as a yearly cost and that comes to $75 million. That's about 3:1 cost of operating the services to paying employees. That seems quite high as I've never been…

Sam Altman didn't say LLMs are over. (He's the CEO of OpenAI, so that would be a really strange thing for him to say, wouldn't it?)

What he actually said was that we've reached the point where we can't improve model quality simply by increasing its size (number of parameters). We'll need new techniques to continue to improve.

Re: ChatGPT could cost over $700k per day to operate

#150

Post by roflyear »

pdksam wrote: post #13
roflyear wrote: post #7

I suspect that performance and responses will soon degrade pretty significantly

If anything performance should get better with time

What I mean is resources will be limited or models that are slightly worse will be released that will be much more cost effective but not quite as good.

This is often the case with these types of technologies.

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