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OpenAI may slash API prices for ChatGPT next month

ChatGPT API prices and memory storage

Speculation is circulating that OpenAI may unveil some amazing new price cuts for developers next month during its first OpenAI Developer Conference 2023. Sources close to the action who would rather not be named have contacted Reuters explaining that potential major updates for developers to build software applications based on OpenAI’s ChatGPT large language model will be announced next month.

OpenAI, a leading artificial intelligence research lab, is set to introduce significant updates aimed at making AI-based software development cheaper and faster. These updates, which include the introduction of memory storage to developer tools and the addition of vision capabilities for image analysis.

ChatGPT Memory Storage

The introduction of memory storage to its developer tools is a significant step forward for OpenAI. This feature could potentially reduce costs for application makers by up to 20 times, making it more affordable for developers to build software applications based on OpenAI’s AI models. This is a crucial move, especially considering the high revenue expectations of the company. OpenAI executives expect to close this year with $200 million in revenue and aim to reach $1 billion by 2024.

API price cuts

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The addition of vision capabilities is another significant update. This feature will enable developers to build applications that can analyze and describe images, expanding the range of possible applications for OpenAI’s technology. This is part of OpenAI’s broader strategy to transition from a consumer sensation to a developer platform. The company launched ChatGPT last November, which quickly became one of the world’s fastest-growing consumer applications. Now, OpenAI is looking to encourage companies to use its technology to build AI-powered chatbots and autonomous agents.

OpenAI developers conference 2023

However, OpenAI’s journey has not been without challenges. The company has faced difficulties in encouraging outsiders to build businesses using its technology. Despite these challenges, OpenAI is planning to release the stateful API, which will make it cheaper for companies to create applications by remembering the conversation history of inquiries. This release, along with the vision API, is part of OpenAI’s efforts to attract more developers to pay to access its model to build their own AI software.

The AI industry has seen significant investment, with investors pouring over $20 billion this year into AI startups, many of which rely on OpenAI’s technology. However, there are concerns over startups’ reliance on OpenAI or Google. OpenAI is working to distinguish itself from competitors like Google and to keep developers happy. However, its ambition to win over other companies has been less smooth, with plugins not gaining market traction.

OpenAI’s upcoming updates are a significant step towards making AI-based software development cheaper and faster. The introduction of memory storage to developer tools and the addition of vision capabilities for image analysis are expected to reduce costs and expand the range of possible applications for OpenAI’s technology. However, the company faces challenges in attracting businesses to use its technology and in distinguishing itself from competitors. Despite these challenges, OpenAI’s efforts to keep developers happy and its high revenue expectations suggest a promising future for the company. As always we will keep you up to speed on all the new announcements made in the run-up to OpenAI’s first highly anticipated developer conference taking place in San Francisco on November 6th 2023.

Source : Reuters

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OpenAI considering designing its own AI chips

OpenAI considering designing its own AI chips

OpenAI, a leading artificial intelligence research lab, is reportedly considering the development of custom AI chips to address its ongoing struggle with GPU supply. This move, while potentially beneficial, is fraught with challenges and complexities. It reflects a broader trend among large tech companies, such as Tesla, Apple, and Huawei, who are increasingly designing custom silicon chips in-house. However, the path to successful chip design and production is not straightforward and involves significant investment, time, and expertise.

The supply of GPUs, which are critical for training AI models, has been a persistent issue for OpenAI. The demand for these chips has outpaced supply, leading to a bottleneck in AI system scaling. This has prompted OpenAI to explore alternatives, including the development of its own AI chips. However, replacing Nvidia GPUs, which are currently the industry standard, with high-performance custom chips is a complex task. It involves designing circuits, taping out the chip, designing the compiler, and creating a high-level framework for training AI models.

OpenAI AI chips

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The time required to design and produce a useful chip is substantial. Estimates suggest that it could take OpenAI between 3-5 years to develop a chip that could effectively meet its needs. This timeline is not unusual in the chip industry. For instance, Tesla embarked on a similar project in 2021 to design its own AI accelerators in-house. However, as of 2023, this project is still in development, demonstrating the lengthy process involved in chip design and production.

Even if OpenAI successfully designs its own AI chips, it would still face the challenge of securing wafer fabrication capacity. This is a competitive space, with tech giants like Nvidia and Apple also vying for the same resources. The competition extends beyond fabrication capacity, with companies like Intel and AMD also showing interest in the lucrative AI chip market.

Graphcore IPU

Given the high stakes and low probability of success in chip design, OpenAI may consider acquiring an AI chip startup. Companies like Graphcore or similar, which already have experienced teams and established processes, could be potential acquisition targets. This approach could potentially expedite OpenAI’s entry into the AI chip market.

Collaboration is another avenue that OpenAI could explore. For instance, a partnership with AMD could result in the design of customized chips specifically tailored to OpenAI’s workloads. This approach could leverage AMD’s existing expertise and resources, reducing the time and investment required for OpenAI to develop its own chips.

Microsoft Athena AI chip

Interestingly, Microsoft is also reportedly working on its own AI chip, Athena. This move is largely driven by Nvidia’s dominance in the AI chip market, which currently controls over 80% of the market share. If successful, OpenAI could potentially use Microsoft’s chip for their workloads, providing another alternative to the current GPU supply issue.

The high demand for AI chips is driving many companies to develop their own custom silicon. This trend is likely to continue as AI applications become increasingly prevalent and the need for high-performance chips grows. However, the competition is fierce, with Nvidia continuously working on the next generations of their AI accelerators. This makes it challenging for new entrants to the market, including OpenAI, to gain a foothold.

OpenAI’s potential development of custom AI chips represents a significant shift in its strategy to address its GPU supply issues. However, the path to successful chip design and production is fraught with challenges, including the complexity of the design process, competition for wafer fabrication capacity, and the heavy investment required. Whether OpenAI chooses to develop its own chips, acquire a startup, or collaborate with another company, it will be a significant undertaking that will shape the future of the organization and potentially the broader AI chip market.

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