The cost of the ChatGPT Revolution: A Dark Cloud Over It is enormous and one that few are able to bear. With predictive artificial intelligence hitting mainstream, OpenAI, a major player in the space, has reportedly lost approximately $540 million and requires over $100 billion to meet its goals. Sam Altman, the founder of OpenAI, described it as the most capital-intensive start-up to ever exist in Silicon Valley.
Companies are now increasingly relying on the cloud to support processing power of AI models such as ChatGPT, as it is far too expensive to build their own infrastructure. Whether its giants such as Google, Amazon Web Services, or Microsoft, these cloud services cost companies a lot of money – ranging from millions to even billions of dollars. Companies are now spending power for training models as they run up bills to create technologies such as OpenAI, Microsoft, or Google, at a cost of tens of thousands of Nvidia H100 systems.
Microsoft, specifically, is banking huge on artificial intelligence with ChatGPT to ensure the profitability of its cash cow, Azure. With the launch of OpenAI, Microsoft’s CEO Satya Nadella is hopeful for its success, hoping to generate around $40 to $50 billion a year.
However, it is not only Microsoft that risks suffering massive losses. If companies don’t keep a close eye on costs, they are in for an unexpected surprise with their respective electricity and cloud bills. This risk is so grave that it is causing anxiety in many businesses.
The fact remains that cloud computing and the technology magnates are here to stay, at least in the short run. Companies eager to join this revolution must take caution and gauge their requirements, investments, and costs thoroughly to prevent costly mishaps.
OpenAI is a prominent artificial intelligence company that was founded in 2015. It currently conducts research within a range of domains, including chatbots, robotics, and natural language generation. Founded by Tesla and SpaceX investor Sam Altman, OpenAI is well-known for developing its flagship ChatGPT product, a predictive AI-based chatbot.
Microsoft is a leader in the tech industry with a presence in virtually all aspects of computing, from the cloud to its many software and hardware offerings. The Redmond-based giant recently made a large investment in OpenAI and placed a huge bet on generative artificial intelligence. Head of Microsoft Satya Nadella has declared this bet the right direction for the company. Microsoft looks to Azure, its essential cloud computing platform, as a means of generating huge profits through its AI investments.
