ChatGPT costs $700,000 per day to run, which is why Microsoft is building its own AI chip
ChatGPT, the popular AI-based chatbot from OpenAI, costs a whopping $700,000 per day to run, according to Chief Analyst at research firm SemiAnalysis, Dylan Patel. This amount is attributed to the high demand for AI services, with millions of users flocking to ChatGPT on a daily basis.
Microsoft, a leading player in the AI field, is moving forward with their own solution to reduce the costs associated with AI services. The company has already begun testing their AI chip, codenamed Athena, among select groups internally at Microsoft. Estimates suggest that with their own AI chip, Microsoft will be able to reduce their dependence on GPU providers such as NVIDIA.
While Microsoft does not plan to entirely replace NVIDIA, it is expected that the development of their AI chip will help reduce costs, making it easier for OpenAI to maintain cost-effective AI services. ChatGPT currently runs on Azure services, and with the integration of the AI chip, Microsoft will be able to lessen the dependence on external vendors, thus reducing costs significantly.
With Google's launch of Bard, their own AI product, being a failure, Microsoft has been aggressively pushing for AI services. Reports suggest that Google rushed Bard to the market to counter Microsoft's Bing AI efforts, leading to a lack of confidence among Google employees.
As AI services continue to become more popular and in demand, it's clear that companies will need to find more efficient and cost-effective solutions to maintain their offerings. With the development of their AI chip, Microsoft is well on their way to reducing the costs of AI services.
