How Much Did It Cost to Train GPT-4? Let’s Break It Down

How much did it cost to train GPT-4? From tech enthusiasts to industry veterans, everyone is intrigued by the costs associated with developing these complex language models.
5 min read
5 min read
training costs of LLMs like GPT-4
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Exploring the World of LLMs: Training Costs and Methodology

Large Language Models (LLMs) like GPT-4 are trained using a method called supervised learning, which requires large amounts of labeled data and considerable computational resources. In this process, the model is presented with example inputs and outputs, which it uses to make predictions. Over time, through a cycle of feedback and adjustments, the LLM improves its ability to predict accurate outputs.

Recent figures suggest that training a single AI model can emit as much carbon as five cars in their lifetimes, highlighting the significant environmental footprint of AI. For instance, the training of GPT-3 by OpenAI, with its 175 billion parameters, consumed millions of dollars worth of energy. This immense energy use underscores the environmental implications of AI training. 

Nevertheless, AI can also serve as a powerful tool in the fight against climate change. We recently explored how AI can have a positive impact on climate change. By streamlining processes, predicting effects, and providing alternative solutions, AI can help us gain a more comprehensive understanding of our climate and develop effective strategies to mitigate change.

Comparing GPT-3 Vs GPT-4 Training Costs

So, How much did it cost to train GPT-4? GPT-3 is the model that reshaped the AI landscape with its impressive capabilities back in 2020. So, the cost to train GPT-3, GPT-4’s predecessor was a whopping $4.6 million—a sign of not just the complexity of the model but also its potential applications.

However, training GPT-4 in 2023 was an even more expensive endeavor. The answer to “How much did it cost to train GPT-4?” is a staggering $63 million, excluding the salaries of the researchers. This figure reflects the scale of improvements and advancements made from GPT-3 to GPT-4.

Estimations of AI Training Costs in 2023

As we move forward in the future, the cost of training AI models is projected to change. As of Q3 2023, the estimated cost to train a model to the caliber of GPT-4 was around $20 million (more than 3x cheaper) with about 55 days to complete the process. This estimation underlines the incredible progression in efficiency and cost-effectiveness that is constantly unfolding in the realm of AI.

The Impact of Technological Advancements

Advancements in technology have a substantial impact on the cost and efficiency of training AI models. With better technology, we can train more sophisticated models faster and at lower costs. For instance, the drop in training costs from GPT-4’s $63 million to the estimated $20 million in 2023 is a testament to the progress we’ve made. 

ai model getting trained (funny)

The race to train large language models (LLMs) is not without its security drawbacks. Recently, OpenAI patched a serious security hole in the free macOS app of ChatGPT, prompting serious privacy concerns. The report by TechRadar emphasized the need for better security measures in AI development, reminding us that while efficiency and cost-effectiveness are important, they should not come at the expense of users’ safety and privacy. If privacy is a concern for you, we at Team-GPT Enterprise would be happy to discuss the safest methods of using AI.

data privacy compliance

Perhaps further AI adoption in 2024 and beyond could reshape the landscape in terms of training LLMs’ costs. With our FREE ChatGPT for Work Course, we at Team-GPT aim to:

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Most lessons are brief, lasting just 2-3 minutes, and with the total video content amounting to around an hour. Your instructor for this course is our CEO Iliya, who has:

  • Taught AI to over 1.3 million people online
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The course is designed to promote interactive learning. We believe in a hands-on approach, so expect to be interacting with ChatGPT for 90% of the time.

👉 Here’s the 1st lesson

What’s Next

From GPT-3 to GPT-4 and beyond, the world of AI is constantly evolving. The question “How much did it cost to train GPT-4?” offers insight into not just the financial aspect but also the technological prowess required to develop something as groundbreaking as GPT-4. As we continue to push the boundaries of what AI can achieve, costs will likely continue to fluctuate, driven by numerous factors including technological advancements, size of the dataset, and complexity of the model. Asking ourselves “Will the cost of training AI could become too much to bear soon?” is lacking a direct answer and we will just have to wait and see.

Understanding AI is crucial. That’s why we have built Team-GPT to support your team and guarantee AI adoption across your entire company.

Iliya Valchanov

Iliya teaches 1.3M students on the topics of AI, data science, and machine learning. He is a serial entrepreneur, who has co-founded Team-GPT, 3veta, and 365 Data Science. Iliya’s latest project, Team-GPT is helping companies like Maersk, EY, Charles Schwab, Johns Hopkins University, Yale University, Columbia University adopt AI in the most private and secure way.