The explosion of generative AI has taken the world by storm, but one question all too rarely comes up: Who can afford it?
OpenAI bled around $540 million last year as it developed ChatGPT and says it needs $100 billion to meet its ambitions, according to industry media The Information.
“We’re going to be the most capital-intensive startup in Silicon Valley history,” OpenAI’s founder Sam Altman to .. And when Microsoft, which poured billions of dollars in investment into OpenAI, is asked about how much its AI adventure will cost, the company answers with assurances that it is keeping an eye on its bottom line.
Building something even near the scale of OpenAI that Microsoft or Google have on offer would require an eye-watering investment on state-of-the-art chips and recruiting prize-winning researchers. People don’t realise that to do a significant amount of AI things like C ..
Heavily underestimated
The unpredictable costs of cloud computing, “is a heavily underestimated problem for many companies,” said Stefan Sigg, chief product officer at Software AG, which develops software for businesses.
Sigg compares cloud costs to electricity bills and says companies that don’t know better are in for “a big surprise” if they let their engineers run up bills in the mad rush to build tech, including AI.
