What is the cost involved in building ChatGPT, the groundbreaking technology?

What is the cost involved in building ChatGPT, the groundbreaking technology?

ChatGPT, developed by OpenAI and launched in November 2022, has caused a seismic shift in the world of technology. This natural language processing (NLP) chatbot has demonstrated the immense potential of artificial intelligence, from acing university exams to crafting speeches and supporting marketers and programmers alike. With Microsoft investing in ChatGPT for the third time, even industry giant Google is feeling the pressure, as businesses worldwide seek to harness the power of this revolutionary technology.

Appinventiv was also captivated by ChatGPT’s impact on the tech industry. As a result, we’d like to offer our expertise on creating an app like ChatGPT and the associated development costs, which can range from $100,000 to $500,000. In addition, we’ll provide a detailed guide on the business and technical aspects of building such a chatbot. But before delving into the technical details, let’s first understand ChatGPT.

What is ChatGPT precisely, and why is it causing so much excitement?

ChatGPT is more than just a chatbot; it’s an artificial intelligence model based on the revolutionary ‘Generative Pre-trained Transformer 3’ (GPT 3) technology developed by OpenAI. Utilizing deep learning techniques, ChatGPT is capable of generating text based on the input it receives, enabling it to engage in coherent and consistent conversations on a wide range of topics.

In the past, AI chatbots struggled to simulate human-like conversations and had limited capabilities. However, the emergence of transfer learning, coupled with the ability to process vast amounts of data, has overcome this challenge and fueled the hype around ChatGPT.

OpenAI has been perfecting its GPT algorithm over several years, culminating in the latest iteration, GPT 3. The first version of GPT was designed for causal language modeling (CLM), where it could predict the next token in a sequence. Improving upon this foundation, GPT 2 was capable of generating coherent text from a grammatical and linguistic perspective.

The most recent version, GPT 3, serves as the foundation for ChatGPT, the conversational AI chatbot that became an overnight internet sensation. In just five days, ChatGPT amassed one million users, and within 40 days, that number had skyrocketed to 10 million.

A detailed analysis of the development cost for ChatGPT app

The cost of developing a GPT-based app will depend on several factors. The complexity of the model, its intended use case, the required dataset, and the computational resources are some of the primary considerations that will influence the development cost of an AI app like ChatGPT. For example, ChatGPT was trained on a massive dataset of 570GB of textual data.

The cost of gathering a large dataset can be high, especially if access to proprietary data needs to be paid for or if people need to be hired to annotate the data. Cloud-based resources can also add to the cost of developing an app like ChatGPT, with prices varying depending on the resources used and the duration of usage. Data annotation can cost anywhere from a few cents to a few dollars per annotation, and data acquisition costs can vary widely depending on the source.

When it comes to storage and computational requirements, using cloud-based resources like AWS, GCP, or Azure can cost anywhere from a few hundred dollars to several thousand dollars per month depending on the resources used and the duration of usage. Additionally, the creation of an interface or app will also contribute to the overall development cost of an AI-based app.

To give an approximate figure, the cost of developing an app like ChatGPT can range from $100,000 to $500,000 and may take several weeks to several months to complete, depending on the various factors mentioned above.

How can the cost of developing an app similar to ChatGPT be optimized?

Developing an artificial intelligence chatbot like ChatGPT is a challenging task that requires top-notch expertise. However, there are ways to optimize the ChatGPT app development cost by making smart decisions. Here are a few tips to achieve cost optimization:

Choosing the Right Development Partner: Opt for a development partner who not only possesses the technical know-how but can also guide you in avoiding costly mistakes, rework, and budget overruns. A reliable partner can help optimize the cost of developing an app like ChatGPT by utilizing the latest technologies.

Adopting an MVP Approach: An MVP or minimum viable product is a development approach where the essential features of an app or software are developed first and released for feedback. By building only the core features required by the customers, unnecessary feature costs can be eliminated, leading to significant cost savings in AI-based app development.

Selecting a Cloud-Based Solution: Moving to the cloud is a popular and cost-effective strategy for businesses to optimize costs. When it comes to an AI chatbot, partnering with a cloud provider can further reduce the cost to develop an app like ChatGPT. As huge amounts of data are required to train and operate such a chatbot, a cloud-based solution can significantly bring down the cost.

At Internet Soft, we understand AI/ML

As pioneers in the technological revolution, we have assisted numerous clients in achieving scalability and agility by unlocking data trapped in silos through our AI development services. Our team of data scientists and engineers have repeatedly demonstrated their proficiency in using AI to develop a budget management application, as well as streamlining and optimizing the day-to-day operations of a leading European bank.

As artificial intelligence and machine learning continue to transform the biz-tech landscape, it’s time to leverage these technologies to your benefit. Contact us today to discuss your generative AI chatbot requirements.


Q: What is the estimated cost of developing an app similar to ChatGPT?

A: The cost of developing an AI-powered chatbot like ChatGPT ranges from $100,000 to $500,000. The overall cost depends on several factors such as the size of the dataset, the specific use case of the chatbot, the required features and services, among others.

Q: How much time does it take to build an AI chatbot?

A: The development timeline for an AI chatbot varies depending on several factors, such as the size and complexity of the dataset, the specific use case of the chatbot, and the required features and services. Generally, it may take several weeks to months to develop a functional AI chatbot.

Q: What is the required dataset size for developing an AI chatbot?

A: The required dataset size for building an AI chatbot varies depending on the chatbot’s intended application. As a reference point, ChatGPT was trained on a textual dataset of 570GB.

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Abhishek is a dynamic Chief Operations Officer with a proven track record of optimizing business processes and driving operational excellence. With a passion for strategic planning and a keen eye for efficiency, Abhishek has successfully led teams to deliver exceptional results in AI, ML, core Banking and Blockchain projects. His expertise lies in streamlining operations and fostering innovation for sustainable growth

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