ChatGPT costs $700,000 per day to run, which is why Microsoft wants to make its own AI chips

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Searching the internet with AI costs a lot more than normal searches.

What you need to know

  • A new report claims ChatGPT costs an estimated $700,000 a day to run.
  • Microsoft has recently been rumored to be developing its own AI chips.
  • Microsoft’s own chip could reduce costs by a third or more.

AI is all the craze currently, with millions of users utilizing ChatGPT on a daily basis. With such high demand, it’s no surprise to hear that ChatGPT costs quite a bit of money to run. Chief Analyst at research firm SemiAnalysis, Dylan Patel, estimates that ChatGPT currently costs OpenAI $700,000 per day, or 36 cents per query.

That’s a lot of money, and it’s not helped by the fact that AI companies, including Microsoft, need to buy GPUs from the likes of NVIDIA in bulk orders to help maintain their AI services as demand continues to increase. Industry analysts estimate that OpenAI may need to order 30,000 additional NVIDIA GPUs this year to aid its commercial efforts.