🕳️ A $250 million dollar hole in the pocket

Read time: 2.5 minutes

Welcome back, superhuman

ChatGPT’s expenses are ballooning by the day according to a research report. Almost $700,000 worth of balloons every day to be exact.

And speaking of money problems, reports say one of ChatGPT’s biggest competitors is on the prowl to raise big money at a $4 billion valuation.

TODAY’S MENU

• The Big Insight: A $250 million hole in ChatGPT’s wallet

• 5 AI tools to supercharge your productivity

• Funding Roundup: A $4 billion valuation and a $200 million raise

• Research: AI is beating humans at CAPTCHA

• AI Tutorial: Generate and apply custom formulas to your data

• AI-Generated Images: Who ordered a temple?

TODAY IN AI & TECH  

• Transl-ai-tor: A new AI voice generator can replicate your voice in 30 different languages.

• Blockbuster: Chip firm ARM’s upcoming IPO is expected to be the biggest US IPO in almost 2 years, and could potentially exceed $70 billion in valuation.

• Picture Perfect: Microsoft’s AI-powered design tool is now available in-browser and lets you create social media posts, flyers, and more.

• Debunked? A popular piece of recent research portraying ChatGPT as possessing left-wing biases could have serious flaws.

• Study hack: An EdTech startup says they have an AI tool that helps students study better by predicting exam questions.

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THE BIG INSIGHT

Report claims ChatGPT costs a staggering $700,000 a day to operate

ChatGPT might be one of the fastest-growing apps of all time, but its bills aren’t far behind when it comes to setting records.

According to SemiAnalysis, OpenAI is burning through an estimated $694,444 of cold hard dollar bills a day to operate ChatGPT, which comes up to roughly $250 million in annual expenses.

According to the authors, the high cost can be boiled down to the expense of power-hungry chips needed to run the model behind ChatGPT. The report says that ChatGPT requires about ~3,617 HGX A100 servers (28,936 GPUs) to operate and puts the cost per query at at around 0.36 cents.

The report was originally published before the launch of GPT-4, so costs have likely ballooned even further by now, estimates one of the report’s authors.

It’s no secret that GPUs are the most coveted resource in the AI industry, as companies and countries are going to great lengths to secure these chips. Microsoft - OpenAI’s biggest investor - said that its working on its own chip to reduce costs and dependence on Nvidia’s GPUs.

While there are no guarantees, investment firm ARK predicts that the cost of training and operating AI models like the one behind ChatGPT should plummet to a tiny fraction of current costs by the end of the decade, if we follow Wright’s Law of cost declines as a function of cumulative production.

5 AI Tools to Supercharge Your Productivity

Vscoped: Quickly and accurately transcribe TikTok, YouTube short, or long-format videos.

Wilowrid: Convert your video content into text articles quickly and easily.

Deepgram (sponsored): Scale your startup with $100,000 in credit for the most powerful speech-to-text API. Diarization, smart formatting, multiple languages, and more.

Apply today!

Human Generator: Craft hyper-realistic synthetic humans. Even creates another version of you with a click.

Deepfakes.lol: Choose a video of someone talking. Enter what you want them to say. Get a lip-synced, deepfake video.

FUNDING AND ACQUISITIONS

The biggest deals in AI this week

• Salesforce reportedly leading financing of OpenAI competitor Hugging face at more than $4B valuation. Read more

• AI drug designer Genesis Therapeutics forges $200M round with eye on clinical testing. Read more

• Healthcare robotics platform Mendaera secures $24M. Read more

• Customer engagement platform Beamer raises $20M. Read more

• Chargeflow, which taps AI to fight chargebacks, raises $14M. Read more

• Wisecut raises funding from Tim Draper to expand its AI-driven video editing platform. Read more

• OpenAI acquires AI design studio Global Illumination. Read more

• Not all early-stage AI startups are created equal. Read more

• AI company Hypergiant Industries snapped up by PE firm Trive Capital. Read more

RESEARCH

AI bots are better than humans at solving CAPTCHAs

AI bots are better than humans at deciphering CAPTCHAs, the security tests used to differentiate humans from machines on websites. According to a study conducted by researchers from the University of California, Microsoft, and others, AI bots have an accuracy rate of 85-100% in solving CAPTCHAs, significantly outpacing human accuracy which ranges between 50-85%.

These bots mimic human cognitive functions and vision to get accurate results. Google's advanced tool — reCAPTCHA — introduced in 2019, is also being challenged by these AI bots. The fast-paced advancements in AI technology raise questions about the future effectiveness of CAPTCHAs as a safe measure against automated invasions by bots. Read more 

AI TUTORIAL

Generate and apply custom formulas to your data in ChatGPT

Enable Code Interpreter mode in ChatGPT. Upload a spreadsheet. Try the prompt below:

Create a custom formula and apply it to the data to generate total revenue by location [or some other objective of your choice]

Please be careful not to upload any sensitive information to ChatGPT.

AI-GENERATED IMAGES

Who ordered a temple?

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Thanks for reading.

Until next time!

Zain

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