After several initiatives taken for the adaptation of Artificial intelligence (AI) on a large scale, experts seem to suggest that developing AI might cost a bomb.
Reportedly, Dario Amodei, the CEO Anthropic said that most startups won’t be able to afford to sign up for the AI race.
Affording AI might break your bank
In a recent ‘In Good Company’ podcast interview with Norges Bank CEO Nicolai Tangen, Anthropic CEO Dario Amodei went into the nuts and bolts of AI development. During the interview Dario Amodei explained how much it takes to get an AI model off the ground.of $18 billion startup.
Amodi said that training an AI model costs around $100 million, but “there are models in training today that are more like a billion.” He also claimed that the current AI model prices will soon be considered on the lower end compared to what it will cost to develop competitive AI in the next few years.
What does Dario Amodei have to say about AI?
As highlighted during the interview he also thinks that this rise in the price will happen in 2025, 2026, maybe 2027. He further added that there is a good chance that by that time we will be able to get models that are better than most humans at most things.
He seems to believe that the high cost structure of AI models sets a high bar for startups who want to add their in-house models on OpenAI or Anthropic. Last week a Google report revealed its emissions rose by nearly 50% in four years because of AI. Amodi believes that this could also contribute to the high cost structures of AI models. He believes to maintain an eco-friendly AI structure, companies need to raise their budget a bit.
The way ahead
Amodi further claimed that AI models can go to $10 or $100 billion. For example, on average, U.S. startups raised about $59 million in fourth-stage Series C funding in Q1 2023. This when compared to the amount of $450 million Anthropic raised in its Series C in May 2023, seems to be a far cry. “Of course, I think there’s going to be a vibrant downstream ecosystem and there’s going to be an ecosystem for small models,” he further explained.
During the interview, Amodei further mentioned that Anthropic is working on Nvidia-competing AI chips with Google and Amazon. Early reports suggest that these two companies have invested up to $2 billion and $4 billion respectively in Anthropic.
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