Chatbot operation turned out to be costly – even for Google
AI implementation will cost the company up to $6 billion
Alphabet Inc’s efforts to integrate generative AI into its Google Search has become a new problem for the company.
Following a chatbot gaffe that caused its market value to drop by $100 billion, executives in the tech industry are discussing how to employ ChatGPT-style AI while considering the high costs.
According to OpenAI’s founder, Sam Altman, the popular chatbot has ‘eye-watering’ computing costs of a few or more cents every conversation. On the other hand, John Hennessy, the chairman of Alphabet, stated that while fine-tuning can reduce costs, speaking with AI through a broad language model will likely cost ten times as much as a regular keyword search.
Regardless of revenue from potential chat-based search advertisements, analysts predict that the technology may cost Alphabet several billion dollars in additional expenses.
A Morgan Stanley estimate reveals that each of Google’s 3.3 trillion annual search queries costs roughly a quarter of a penny, with costs increasing as AI creates more text.
Analysts anticipate that Google’s expenses could rise by $6 billion if ChatGPT-like AI responds to 50% of the queries it receives by 2024 with 50-word responses.
