ChatGPT needs $100 billion to continue growing

OpenAI founder Sam Altman said the company plans to become the most funded startup in Silicon Valley history. When asked about the cost of developing artificial intelligence (AI), Microsoft - a company that has invested billions of dollars in OpenAI - said it is tracking its profits.

Building a project as large as OpenAI, Microsoft or Google would require a huge investment in state-of-the-art chips and hiring award-winning researchers.

Analyst Jack Gold said people don’t realize that training AI as powerful as ChatGPT can cost tens of millions of dollars. He questioned how many companies could afford to buy 10,000 H100 chips — Nvidia’s most powerful chip model, which costs tens of thousands of dollars each.

In the technology industry, if a company can’t build its own infrastructure, it has to rent it. As a result, small companies have to use cloud computing services from Microsoft, Google, and Amazon Web Services.

According to *SCMP* , experts warn that with the race to create artificial intelligence exploding, dependence on cloud computing and technology "giants" will become increasingly serious.

Stefan Sigg, product manager at enterprise software development company Software AG, said the unpredictable costs of cloud computing are an issue that companies are underestimating. Sigg compared cloud computing costs to an electricity bill and warned that companies will be in for a “big surprise” if they don’t control costs while engineers develop technology.

Microsoft CEO Satya Nadella insists that generative AI is on the right track. Microsoft CFO Amy Hood says that while investing in AI is risky, the company wants to be at the forefront of this technology wave.

Wedbush Securities analyst Dan Ives predicts that if Microsoft's bet on AI is successful, it could earn $20 billion to $40 billion annually.

Reliance on AI will be costly and companies and investors are looking for alternatives to reduce costs. Spectro Cloud CEO Tenry Fu believes that AI training, GPT training will become important cloud services in the future.

Regulators are trying to come up with measures to prevent large companies from restricting opportunities for competitors.

Like many other companies in the space, Spectro Cloud helps companies optimize their cloud technology to cut operating costs. But after training, companies will be able to take their models back to apply AI, which will help them reduce their dependence on cloud computing giants, Mr. Fu added.

FTC Chairwoman Lina Khan told CNBC that the regulator must ensure that opportunity and competition are not undermined by tech giants.

Testifying before the US Senate Judiciary Committee on May 16, OpenAI CEO Sam Altman said the number of companies that can actually train AI models will be very small because of the resources it requires to develop. Therefore, there needs to be close supervision of OpenAI and other AI companies, he said.

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