The breakthrough that is ChatGPT: How much does it cost to build?

Since its launch in November 2022, ChatGPT has shaken the technological world as we know it. The natural language processing (NLP) chatbot developed by OpenAI has shown the world how transformative artificial intelligence will be. From passing university-level exams to writing keynote speeches, from assisting marketers to helping programmers write and debug codes, no industry or domain is untouched by this AI revolution known as ChatGPT.
Therefore, we wanted to share our expert insight into how to make an app like ChatGPT and ChatGPT app development cost, which can be anywhere between $100,000 to $500,000 (more details later).
In its essence, ChatGPT is a chatbot. But when you look a little bit closer, it is so much more than that. OpenAI developed a natural language processing artificial intelligence model based on ‘Generative Pre-trained Transformer 3’ (GPT 3) technology.
In its own words, “ChatGPT is a state-of-the-art language generation model developed by OpenAI. It uses deep learning techniques to generate text based on the input it receives. This allows ChatGPT to hold conversations and answer questions on a wide range of topics with high coherence and consistency.”
OpenAI has been developing its GPT algorithm for years, the latest version being GPT 3. OpenAI trained the first version of GPT with the objective of causal language modeling (CLM) being able to predict the next token in a sequence. Building upon this model, GPT 2 could generate coherent text from a grammatical and linguistic standpoint.
Then came GPT 3, on which ChatGPT is based. The conversational AI chatbot became an internet sensation overnight and had 1 million users in just five days and 10 million in 40 days.
Several factors will determine GPT-based app development costs. The complexity of the model, the end use case of the model, the dataset required, and the computational requirements are some of the significant factors that will influence the cost of developing a ChatGPT-like AI app. To have a sense of the dataset required, ChatGPT was trained on 570GB of textual data.
To begin with, gathering a large dataset can be quite expensive, especially if you need to pay for access to proprietary data or hire people to annotate the data. Additionally, if you have to use cloud-based resources, the cost to develop an app like ChatGPT can be quite high depending on the resources used and the duration of usage. The cost of data annotation ranges from a few cents per annotation to a few dollars per annotation. Also, the cost of obtaining data can vary greatly depending on the source.
To put a number to it, the ChatGPT app development cost can range between $100,000 to $500,000. And it can take from several weeks to several months to develop such an app, depending on the factors mentioned above. The cost of developing an AI content detection tool is also around the same range.

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