Inside the ChatGPT Economy

In this article, we will delve into the financial aspects of the intricate mechanism known as ChatGPT. We will explore its cost, the driving forces behind its operation, and the entities funding its advancements. We will uncover the components that contribute to the maintenance expenses of ChatGPT and shed light on the price for end-users to access and utilize this chatbot.

Who owns ChatGPT?

ChatGPT is owned by OpenAI, an American artificial intelligence research organization. It comprises two entities: OpenAI, Inc. (non-profit) and its for-profit subsidiary OpenAI, LLC.

This unique setup, involving both non-profit and for-profit entities, serves the purpose of enabling OpenAI to legally secure investments from vulture funds, while also granting equity to its employees.

OpenAI's structure

How much does it cost to run ChatGPT?

The cost of running ChatGPT is made up of server costs, computing power, and employee salaries:

• ChatGPT uses Microsoft’s Azure Cloud infrastructure, which charges $3 per hour for a single A100GPU super computer cluster.
• That way the daily expenses to operate ChatGPT fall within the range of $100,000 to $700,000, totaling $3 to $21 million per month.
• The salary range for employees at OpenAI varies significantly depending on their positions. For instance, the annual salary for an “IT support” role starts at $54,000, while a “Research Scientist” can earn up to $370,000. The earnings of a "Level 5 Software Engineer" at OpenAI are estimated at $925,000 per year. This amount includes a base salary of around $300,000 and stock options valued at $600,000.

ChatGPT's daily expenses

Who are ChatGPT’s investors?

Over the years OpenAI has received investment from many different sources, with Microsoft being by far its biggest backer.

Microsoft has shown immense support for OpenAI, investing $1 billion in the company in 2019, followed by another $2 billion in 2021. Most recently, in January 2023, Microsoft further solidified its commitment with an additional investment of $10 billion. As per CNBC, these investments have granted Microsoft a 49% stake in OpenAI.

To recoup its investment, Microsoft is expected to receive 75% of OpenAI's profits until it has recovered the amount invested.

What is OpenAI’s net worth?

Here are some important figures to consider: 

• OpenAI's estimated value is currently approximately $29 billion. However, its CEO Sam Altman has indicated that the company does not intend to become a publicly traded company in the near future.
• While developing ChatGPT, OpenAI likely incurred a loss of $540 million in 2022.
• OpenAI has projected that it will generate $1.3 billion in revenue by the conclusion of 2023.

OpenAI's valuation

How much does it cost to use ChatGPT?

An average query costs the company around 1 cent. As for the customers, the basic version of ChatGPT is accessible at no cost, although it may not be available in some countries.

For a monthly fee of $20, users can access the premium version called “ChatGPT Plus.” This grants them access to both ChatGPT-4 (the chatbot) and DALL-E-3 (the image generation tool).

Using the official ChatGPT API, TalkAI provides unrestricted and fee-free access to the latest version of ChatGPT for all users, regardless of geographic limitations.