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OpenAI has temporarily stopped selling the Plus plan

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Re: OpenAI has temporarily stopped selling the Plus plan

#11

Have to assume they literally can't get enough GPUs to respond to demand. Wonder if $20/mo is even profitable for them?

There's no way it's profitable. I'd wager this will materially affect Microsoft's next earnings report. Hard to tell how open ai itself is affected financially by the explosive growth but a rude awakening is coming for many users and shareholders alike

Re: OpenAI has temporarily stopped selling the Plus plan

#12
post #11

Have to assume they literally can't get enough GPUs to respond to demand. Wonder if $20/mo is even profitable for them?

There's no way it's profitable. I'd wager this will materially affect Microsoft's next earnings report. Hard to tell how open ai itself is affected financially by the explosive growth but a rude awakening is coming for many users and shareholders alike

> wager this will materially affect Microsoft's next earnings report

How?

Re: OpenAI has temporarily stopped selling the Plus plan

#13
post #5

Earlier quoted context omitted.

GPT-4 is the greatest software developer in the world. I'm sure that it can scale itself easily.

commit hash: deadbeef commit author: GPT-4 commit message: ":rocket_emoji: Set all Azure clusters to autoscale in order to resolve flooded message queue"

commit signed by: Samaritan

Re: OpenAI has temporarily stopped selling the Plus plan

#14
post #8

GPT3 has 175 billion parameters and Altman said 4 would use way more compute than 3. Let's just look at GPT 3. Each forward pass requires 2N=350B flops per token. The computational overhead of the attention mechanism is negligible but the memory overhead of the attention for all users is not, but we can ignore that for now. Let's assume each query involves ~200 tokens of combined input and output. That's 70T flops pe…

I mean, that might be the cost for a onesie-twosie in Azure, but if you're microsoft and you own the hardware, the cost may be one or more orders of magnitude less than that. (Of course, there's just a limit on the number of GPUs that exist and that Nvidia can pump out.)

Microsoft's profit margin for "intelligent cloud" in their most recent earnings was less than 50%. Impressive, but not nearly enough to make GPT subscriptions make financial sense.

Re: OpenAI has temporarily stopped selling the Plus plan

#15
post #12
post #11

Earlier quoted context omitted.

There's no way it's profitable. I'd wager this will materially affect Microsoft's next earnings report. Hard to tell how open ai itself is affected financially by the explosive growth but a rude awakening is coming for many users and shareholders alike

> wager this will materially affect Microsoft's next earnings report How?

They're footing the bill for this whole operation. They provide the compute and storage and they're also so heavily invested in OpenAI after their recent $10B round that they can't offload the costs. See my other comment on this post for a conservative cost estimate for each query.

Re: OpenAI has temporarily stopped selling the Plus plan

#16
post #2

The comments are so ignorant it's unreal. I think the OpenAI team is doing their best. I've heard it's actually hard to scale an app to 100+ million users

I think it’s because people associate OpenAi with Microsoft so they think that one of the largest cloud computing providers in the world ought to be able to scale to these numbers.

Re: OpenAI has temporarily stopped selling the Plus plan

#17
post #8

GPT3 has 175 billion parameters and Altman said 4 would use way more compute than 3. Let's just look at GPT 3. Each forward pass requires 2N=350B flops per token. The computational overhead of the attention mechanism is negligible but the memory overhead of the attention for all users is not, but we can ignore that for now. Let's assume each query involves ~200 tokens of combined input and output. That's 70T flops pe…

A $7 per query estimate is beyond absurd.

Re: OpenAI has temporarily stopped selling the Plus plan

#18
post #17
post #8

GPT3 has 175 billion parameters and Altman said 4 would use way more compute than 3. Let's just look at GPT 3. Each forward pass requires 2N=350B flops per token. The computational overhead of the attention mechanism is negligible but the memory overhead of the attention for all users is not, but we can ignore that for now. Let's assume each query involves ~200 tokens of combined input and output. That's 70T flops pe…

A $7 per query estimate is beyond absurd.

Which of my estimates do you find absurd? How would you calculate cost?

Re: OpenAI has temporarily stopped selling the Plus plan

#19
post #18
post #17

Earlier quoted context omitted.

A $7 per query estimate is beyond absurd.

Which of my estimates do you find absurd? How would you calculate cost?

Most obviously this part must be off by 3-4 orders of magnitude:

> Let's say the cost of compute is 1 cent per 100B flops (probably a lowball)

That's like 0.5ms worth of compute on A100. VMs with an A100 cost a few dollars per hour at cloud providers, i.e. about a cent per second or 0.001 cents per ms. OpenAI would obviously get a far better deal than somebody renting a single GPU for an hour.

Look, we know what OpenAI is charging for their commercial service. We don't know how it maps to their actual serving costs; maybe they're breaking even, making a small profit, or making a small loss. But just basic common sense should tell you that they are not operating at -10000% gross margins.

I suspect that just working backwards from the prices to a reasonable range of gross margins is going to produce much better estimates than your methodology would even after the inputs are tuned to be more realistic.

Re: OpenAI has temporarily stopped selling the Plus plan

#20
post #11

Have to assume they literally can't get enough GPUs to respond to demand. Wonder if $20/mo is even profitable for them?

There's no way it's profitable. I'd wager this will materially affect Microsoft's next earnings report. Hard to tell how open ai itself is affected financially by the explosive growth but a rude awakening is coming for many users and shareholders alike

At the same time MSFT is doing layoffs. GPT is already eliminating jobs.
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