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.
"People don't realize that to do a significant amount of AI things like ChatGPT takes huge amounts of processing power. And training those models can cost tens of millions of dollars," said Jack Gold, an independent analyst.A deep dive into the big business story of the week, as well as expert analysis of markets and trends."How many companies can actually afford to go out and buy 10 000 Nvidia H100 systems that go for tens of thousands of dollars a piece?" asked Gold.
Microsoft's signature cloud offer is Azure and some observers believe the giant's all-in bet on AI is really about protecting Azure success and guaranteeing the cash cow's future. "We will charge for those AI capabilities, and then ultimately, we'll deliver operating profit," she said.Piling up profit at the company founded by Bill Gates can only mean passing on the cost of AI to customers.