3 ms·

ChatGPT costs 700k/day to run; may go bankrupt in 2024

22 points by nycdatasci 3y ago

notpushkin 3y ago
> Don’t miss out on the latest developments in business and finance. Let us notify you as they happen. press “I'm in”, just to mess around > Push Notifications are available for only chrome browser right now. You will be redirected to home page in few seconds. This is some advanced level of bullshit.
- prox 3y ago
  “Can’t be bothered” companies are the worst.
bhaney 3y ago
By this logic, Uber should have gone bankrupt >5 times by now
deleted 3y ago
[deleted]
fendy3002 3y ago
Is it that expensive, unoptimized due to very early or the costs are also include the training for new model? Wonder what'll be the minimum future cost when it's already optimized and used for self hosted commercial purpose.
pylua 3y ago
It bothers me that Sam Altman may become rich even if his company goes bankrupt. Something does not feel right about that — or am I wrong ?
- throwaway5959 3y ago
  He’s already rich, so I wouldn’t worry too much about that.
- spaceman_2020 3y ago
  Adam Neumann disliked this post.
- CPLX 3y ago
  He's been rich.
- KMnO4 3y ago
  I wouldn’t let something like that bother you. It’s not something you can change, so best to not let that sort of negativity affect your life.
- dutchbrit 3y ago
  Why should that bother you?
izzydata 3y ago
Very clever. Get everyone hooked on a free ChatGPt and then fail to monetize it and go bankrupt.
sigmoid10 3y ago
*Could* cost *up to* $700k/day *according to an outsider analyst* Also, nowhere did the original source say that this would lead to bankruptcy. This article is bs.
jhoelzel 3y ago
Azure is pretty much only starting to sell the models soooo i suspect this might change very soon
Gys 3y ago
Discussed (and flagged) yesterday: https://news.ycombinator.com/item?id=37109394 https://news.ycombinator.com/item?id=37109394
ChatGTP 3y ago
Flagged for...?
- elaus 3y ago
  Same as yesterday: https://news.ycombinator.com/item?id=37109394 https://news.ycombinator.com/item?id=37109394
- kordlessagain 3y ago
  The use of the term "moolah" for money.
zhiQ 3y ago
“If the company has 100 million users as it has claimed, and converted 1 percent of them to paying customers, that’s good enough to put them on a $200 million plus run rate.” https://twitter.com/om/status/1690903567551586304?s=20 https://twitter.com/om/status/1690903567551586304?s=20
invalidname 3y ago
This sounds like BS. Lets assume investor money covered the R&D costs and assume all other numbers are correct. 10Bn dollars would be enough for 31 years of 700kUSD spend every day... This ignores the fact that quite a lot of people pay for ChatGPT pro. That might not cover the costs but I'm sure their burn rate won't expire soon. 10Bn is a LOT of money.
smcleod 3y ago
Honestly if you can get yourself a video card with at least 12gb of RAM and I highly recommend running open source models locally. It doesn’t have to be the latest fancy gaming card - I run an old 2016 Tesla P100 ($200AUD~) which is fine for 16B q4 models. They’re more configurable, there’s no subscription model, you contribute to them and meaningful ways, there is a privacy concern if you’re passing your own data and it’s perhaps strangely a more fulfilling experience. I’ve got mine hooked up to Home Assistant so I can automate things with Siri and shortcuts, I’m using it finding patterns and code and several decades of digital notes. If you’re not sure where to start, you can try some models out locally on your machine, using apps like https://lmstudio.ai https://lmstudio.ai or GPT4All with almost no ML knowledge. Then if you want to level up and customise things and run them on the server you can use localAI, Text generation web UI etc which provide openAI compatible APIs. A good 13B model with decent prompting feels pretty on par with chatGPT (3.5) for general tasks, but can be configured to be quite good at very specific things. https://github.com/oobabooga/text-generation-webui https://github.com/oobabooga/text-generation-webui https://github.com/go-skynet/LocalAI https://github.com/go-skynet/LocalAI https://github.com/gitmylo/audio-webui https://github.com/gitmylo/audio-webui
- ChatGTP 3y ago
  A good 13B model with decent prompting feels pretty on par with chatGPT (3.5) for general tasks, but can be configured to be quite good at very specific things. What is a "general task" to you? People at work were using ChatGPT-4, langchain etc and I dont' really see them being any more special, useful, productive or available so I haven't been bothered to invest. In fact some of them seem to have slowed right down on their usuage if using it at all. I can see that it might be fun to play with generating stories or whatever but I mean, what am I missing from not investing in these things?
  - smcleod 3y ago
    There’s plenty of resources out there as to why such tools might be useful but no one is forcing you to be interested or find value in them. Personally I think we’re at that point a bit like when the horse and carriage met the motor car and from a career / technical point of view I’d rather learn how an engine works than raise horses. Ok maybe a poor analogy but I’m sure you get the drift.
chrisgd 3y ago
This article doesn’t understand an income statement or balance sheet.
dumpsterdiver 3y ago
The world will not stand for losing the newly gained capabilities of ChatGPT and the like. The fact that it costs $700k a day to run shows that there is still a very high cost of entering the space, and so the incumbent players have the advantage. There are serious military advantages to having access to a machine learning model this advanced. Not only propaganda, but actual war planning. The only thing that's going to close this box is world war, or a catastrophic natural event.
- smcleod 3y ago
  I think the world will be in flames with the climate and forced mass migration in the very near future - I figure the vast majority of the next generations population probably doesn’t have much of a future as the rest of the world is still too wrapped up in making year on year profits. If the AI wars don’t get us, I think our planet will certainly will.
sharemywin 3y ago
First off it would never just go bankrupt just for the reason it would be one hell of an acquihire. let alone someone would pay for the ChatGPT tech. I doubt they have alot of actual debt. they have paid users. People pay to use the API. I think ChatGPT was an accident and was rally intended to be a "demo" If chatGPT can't raise more money then no one can. You'd be crazy not to make a 1-5% of your wealth bet on GPT5. if they went public today I would invest in them before anything else. I would argue a big part of microsofts recent bump is stock market access to chatgpt.
- ryandvm 3y ago
  This. GPT-4 was the first time in decades that I have been absolutely blown away by the capability of a technology. These LLMs are right up there with the Internet or smartphones as transformational technologies. That said, I wonder whether OpenAI has enough of a moat to be a good investment. I'm guessing that the big players are no less than 6 months behind.
deleted 3y ago
[deleted]

22 points by nycdatasci 3y ago

> Don’t miss out on the latest developments in business and finance. Let us notify you as they happen. press “I'm in”, just to mess around > Push Notifications are available for only chrome browser right now. You will be redirected to home page in few seconds. This is some advanced level of bullshit.

prox 3y ago
“Can’t be bothered” companies are the worst.

bhaney 3y ago

By this logic, Uber should have gone bankrupt >5 times by now

deleted 3y ago

[deleted]

fendy3002 3y ago

Is it that expensive, unoptimized due to very early or the costs are also include the training for new model? Wonder what'll be the minimum future cost when it's already optimized and used for self hosted commercial purpose.

pylua 3y ago

It bothers me that Sam Altman may become rich even if his company goes bankrupt. Something does not feel right about that — or am I wrong ?

throwaway5959 3y ago
He’s already rich, so I wouldn’t worry too much about that.
spaceman_2020 3y ago
Adam Neumann disliked this post.
CPLX 3y ago
He's been rich.
KMnO4 3y ago
I wouldn’t let something like that bother you. It’s not something you can change, so best to not let that sort of negativity affect your life.
dutchbrit 3y ago
Why should that bother you?

izzydata 3y ago

Very clever. Get everyone hooked on a free ChatGPt and then fail to monetize it and go bankrupt.

sigmoid10 3y ago

*Could* cost *up to* $700k/day *according to an outsider analyst* Also, nowhere did the original source say that this would lead to bankruptcy. This article is bs.

jhoelzel 3y ago

Azure is pretty much only starting to sell the models soooo i suspect this might change very soon

Gys 3y ago

Discussed (and flagged) yesterday: https://news.ycombinator.com/item?id=37109394 https://news.ycombinator.com/item?id=37109394

ChatGTP 3y ago

Flagged for...?

elaus 3y ago
Same as yesterday: https://news.ycombinator.com/item?id=37109394 https://news.ycombinator.com/item?id=37109394
kordlessagain 3y ago
The use of the term "moolah" for money.

zhiQ 3y ago

“If the company has 100 million users as it has claimed, and converted 1 percent of them to paying customers, that’s good enough to put them on a $200 million plus run rate.” https://twitter.com/om/status/1690903567551586304?s=20 https://twitter.com/om/status/1690903567551586304?s=20

invalidname 3y ago

This sounds like BS. Lets assume investor money covered the R&D costs and assume all other numbers are correct. 10Bn dollars would be enough for 31 years of 700kUSD spend every day... This ignores the fact that quite a lot of people pay for ChatGPT pro. That might not cover the costs but I'm sure their burn rate won't expire soon. 10Bn is a LOT of money.

smcleod 3y ago

Honestly if you can get yourself a video card with at least 12gb of RAM and I highly recommend running open source models locally. It doesn’t have to be the latest fancy gaming card - I run an old 2016 Tesla P100 ($200AUD~) which is fine for 16B q4 models. They’re more configurable, there’s no subscription model, you contribute to them and meaningful ways, there is a privacy concern if you’re passing your own data and it’s perhaps strangely a more fulfilling experience. I’ve got mine hooked up to Home Assistant so I can automate things with Siri and shortcuts, I’m using it finding patterns and code and several decades of digital notes. If you’re not sure where to start, you can try some models out locally on your machine, using apps like https://lmstudio.ai https://lmstudio.ai or GPT4All with almost no ML knowledge. Then if you want to level up and customise things and run them on the server you can use localAI, Text generation web UI etc which provide openAI compatible APIs. A good 13B model with decent prompting feels pretty on par with chatGPT (3.5) for general tasks, but can be configured to be quite good at very specific things. https://github.com/oobabooga/text-generation-webui https://github.com/oobabooga/text-generation-webui https://github.com/go-skynet/LocalAI https://github.com/go-skynet/LocalAI https://github.com/gitmylo/audio-webui https://github.com/gitmylo/audio-webui

ChatGTP 3y ago
A good 13B model with decent prompting feels pretty on par with chatGPT (3.5) for general tasks, but can be configured to be quite good at very specific things. What is a "general task" to you? People at work were using ChatGPT-4, langchain etc and I dont' really see them being any more special, useful, productive or available so I haven't been bothered to invest. In fact some of them seem to have slowed right down on their usuage if using it at all. I can see that it might be fun to play with generating stories or whatever but I mean, what am I missing from not investing in these things?
- smcleod 3y ago
  There’s plenty of resources out there as to why such tools might be useful but no one is forcing you to be interested or find value in them. Personally I think we’re at that point a bit like when the horse and carriage met the motor car and from a career / technical point of view I’d rather learn how an engine works than raise horses. Ok maybe a poor analogy but I’m sure you get the drift.

chrisgd 3y ago

This article doesn’t understand an income statement or balance sheet.

dumpsterdiver 3y ago

The world will not stand for losing the newly gained capabilities of ChatGPT and the like. The fact that it costs $700k a day to run shows that there is still a very high cost of entering the space, and so the incumbent players have the advantage. There are serious military advantages to having access to a machine learning model this advanced. Not only propaganda, but actual war planning. The only thing that's going to close this box is world war, or a catastrophic natural event.

smcleod 3y ago
I think the world will be in flames with the climate and forced mass migration in the very near future - I figure the vast majority of the next generations population probably doesn’t have much of a future as the rest of the world is still too wrapped up in making year on year profits. If the AI wars don’t get us, I think our planet will certainly will.

sharemywin 3y ago

First off it would never just go bankrupt just for the reason it would be one hell of an acquihire. let alone someone would pay for the ChatGPT tech. I doubt they have alot of actual debt. they have paid users. People pay to use the API. I think ChatGPT was an accident and was rally intended to be a "demo" If chatGPT can't raise more money then no one can. You'd be crazy not to make a 1-5% of your wealth bet on GPT5. if they went public today I would invest in them before anything else. I would argue a big part of microsofts recent bump is stock market access to chatgpt.

ryandvm 3y ago
This. GPT-4 was the first time in decades that I have been absolutely blown away by the capability of a technology. These LLMs are right up there with the Internet or smartphones as transformational technologies. That said, I wonder whether OpenAI has enough of a moat to be a good investment. I'm guessing that the big players are no less than 6 months behind.

deleted 3y ago

[deleted]