The true cost of running ChatGPT adds up faster than you think (www.techradar.com)

OpenAI is navigating the significant costs associated with running ChatGPT, which boasts hundreds of millions of users. Although the popular "free" tier attracts users, it generates substantial infrastructure demands that outpace revenues from subscription tiers, leading to an annual cost of about $17 billion. To address these challenges, OpenAI is evolving its business model to include advertising for free users and lower-tier subscribers, marking a pivotal change in its approach to revenue generation and sustainability. This shift has broader implications for the AI/ML community, as it highlights the unique economics of generative AI, where each additional user incurs extensive computational and energy costs. OpenAI's transition from a nonprofit focused on safe AI to a capped-profit model, backed by significant investments from major corporations, showcases the transformations necessary to support cutting-edge technologies at scale. As advertising becomes integral to maintaining free access, users might expect future changes in pricing structures and access levels, emphasizing the ongoing balancing act between providing advanced AI capabilities and managing operational costs.