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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

#162

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.

I have started incorporating ChatGPT into my side project. I'm not integrating it into software or anything like that, but using it as a tool for product ideas, product photo ideas, funny social media captions, figuring out the best hashtags to use, product tagging and categorization. It has proven to be a great way to get everything to around 70%, then send off to my assistant for the remaining 30% of polish. So at…

> It has proven to be a great way to get everything to around 70%, then send off to my assistant for the remaining 30% of polish. So at $20/month, it was such a no-brainer, that I had to do it.

Yup. I bought accounts for everyone here. We are using it as what I have been calling a "force multiplier". We are not and cannot use it for coding, yet, things like presentations, analyzing logs, creating lists of things, researching topics, etc. It's a great time saver.

Also, for a lot of things ChatGPT is a much better search engine than Google. It gets you great answers and almost always the first time you ask.

In case the question comes up: We don't use it for coding because of potential liability concerns. At this point I feel that is a space that has not been explored at all. I have no interest in being a pioneer in a lawsuit that claims negligence due to the use of AI-generated code, even if it is reviewed by a human. The combination of fear-mongering and tech-challenged juries could make for very expensive outcomes.

I posed a question about this here:

https://news.ycombinator.com/item?id=35655521

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

#163

Earlier quoted context omitted.

> they are years behind Google in that effort. Google still has the advantage in both research and hardware, they just fumbled the execution but it's still very early in the game Where do we think Apple is in regards to this? If anyone has the upper-hand here with hardware, I would think it'd be Apple. But there's been zero indication that Apple has been working on any sort of generative AI.

Apple already has a super-efficient neural engine in all their chips - it's just a matter of them building dedicated models for them.

Apple has stuffed their consumer hardware with high-end chips - that are completely under-utilised by themselves and restricted for third-party apps…

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

#164

Earlier quoted context omitted.

Why is that ridiculous? Cloud services gives companies "coupons" and free usage for X hours for a bunch of other companies, why wouldn't they do that for a company they invested heavily in?

Because that's not how it works. Even company cars of General Motors employees have to be purchased from General Motors. Such "free usage" coupons are marketing activities to gain new customers, Microsoft already completed the "dating phase" with OpenAI. They surely don't pay list-price for Azure but it's surely also not free. Moreover, as per Microsoft themselves, the 1bn USD investment into OpenAI carried the condi…

I've personally worked on a project where Microsoft ate the cloud cost in order partner with us.

They might not give unfettered credits, it could be for specific projects. That said, I wouldn't be surprised if it was unfettered either.

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

#165
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

M$ has been a rather common abbreviation for Microsoft since at least slashdot days.

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

#166
post #154

Earlier quoted context omitted.

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

If you see public company as something other than vehicle to make $$$ for the investor it's you that might have bias problem.

You know people only do that with Microsoft, right? It's not done to make a statement about public companies.

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

#167
post #64

Earlier quoted context omitted.

It's almost like ChatGPT is nerd-sniping us all. But we like it and it's useful to us.

Don't generalize, I've never used it and never seen any reason to use it.

Generalizing is perfectly ok. Having to wrap statements with terms like "almost all" or "most" adds unnecessary noise, outside of academia.

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

#168

Earlier quoted context omitted.

It's a reference to the incremental game "Universal Paperclip". This is when something like "AI singularity" is reached in the game.

UP is one of the few modern games that I've wanted to play more than once.

Yep, factorio and UP are the only games I played more than only a few hours.

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

#169
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?

Taxes in the bay area can be insane - ~40% if I remember correctly. On top of that you have crazy-expensive healthcare, and crazy expensive housing costs.

~100k€ in (western) Europe may be comparable to ~200k€ in Bay Area.

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