• Home
  • Politics
  • Health
  • World
  • Business
  • Finance
  • Tech
  • More
    • Sports
    • Entertainment
    • Lifestyle
What's Hot

Popular women’s clothing chain closes 177 stores

September 12, 2026

Democrats Expect Trump To Cheat In The Midterm

September 12, 2026

‘There’s Three Good Teams at the Top and Then Nothing’

September 12, 2026
Facebook Twitter Instagram
  • Contact
  • Privacy Policy
  • Terms & Conditions
Saturday, September 12
Patriot Now NewsPatriot Now News
  • Home
  • Politics

    Democrats Expect Trump To Cheat In The Midterm

    September 12, 2026

    At 9/11 ceremony, Giuliani and Mamdani … shake hands?

    September 12, 2026

    NBC Boston HARASSES Lone Black Holdout Juror in Clancy Murder Trial, Digs Into His Court Records, Contacts Landlord, Interviews Family Members * The Gateway Pundit * by Cristina Laila

    September 11, 2026

    Trump’s Promise Of $5,000 Checks Is Already Dead

    September 11, 2026

    That’s It?! Here is Video of the Armed Man ‘Lunging’ at Democrat Ohio Gubernatorial Candidate Amy Acton * The Gateway Pundit * by Cristina Laila

    September 11, 2026
  • Health

    Medicaid offers simplified way to handle ‘medical frailty’ exemptions

    September 11, 2026

    Cyclospora outbreak: U.S. officials declare end; origin still unknown

    September 11, 2026

    $500 Obamacare, platinum chemo, ADA boycott: Morning Rounds

    September 11, 2026

    New ‘Queen of Hearts’ AI aims to detect hidden-blockage heart attacks

    September 11, 2026

    Lifesaving childhood chemotherapy raises risk of cancer later in life

    September 10, 2026
  • World

    China-Philippine Feud over South China Sea Escalates

    September 12, 2026

    Trump Ends Convention With The Weirdest Pledge You’ll Ever Hear

    September 12, 2026

    Iran-Backed Houthis Threaten Red Sea Shipping and Bab el-Mandeb Strait

    September 12, 2026

    Conservative Columnist Explains Exactly Why Trump’s New Idea Is ‘Catastrophic’ In Every Sense

    September 12, 2026

    More Action Against Gangs in One Month Than in Past Years

    September 11, 2026
  • Business

    ATF Rule Could Cause Classic Showdown Between Mom And Pop Shops Versus Online Retailers

    July 10, 2026

    Costco Shows That You Can Build A Thriving Business With One Simple Trick (Pay Your Workers)

    July 9, 2026

    The Agency Elizabeth Warren Built Now Advances Trump’s Agenda

    July 9, 2026

    Meta To Shell Out Billions For New AI Data Center Outside US

    July 9, 2026

    How Big Banks Are Scheming To Jack Up Your Fees

    July 8, 2026
  • Finance

    Popular women’s clothing chain closes 177 stores

    September 12, 2026

    Silver prices turn negative leading up to CPI report

    September 12, 2026

    HIVE brings in enterprise veteran to scale BUZZ HPC’s AI cloud business

    September 11, 2026

    172-year-old bank sees 400% upside for ‘federal bank’ token

    September 11, 2026

    Rates shoot up ahead of CPI data

    September 11, 2026
  • Tech

    Sam Altman’s OpenAI Claims to Consider Slowing AI Development as Safety Concerns Mount

    September 12, 2026

    Elon Musk Expresses Skepticism over Viral AI Doom Prediction

    September 11, 2026

    EXCLUSIVE — Silicon Valley Democrat Turned Trump Supporter Warns Chinese AI Could Shape Americans Through ‘Millions of Small Distortions that Nobody Notices’

    September 11, 2026

    FBI Detects Argentina Teenager Using ChatGPT to Plan School Shooting

    September 11, 2026

    China Pushes Back Against American Allegations of ‘Malicious’ AI Theft

    September 11, 2026
  • More
    • Sports
    • Entertainment
    • Lifestyle
Patriot Now NewsPatriot Now News
Home»Tech»Startups Struggle to Meet ‘Massive’ Costs of AI
Tech

Startups Struggle to Meet ‘Massive’ Costs of AI

March 20, 2023No Comments2 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Share
Facebook Twitter LinkedIn Pinterest Email

As startups race to integrate AI into their products, they are running into a major roadblock: spiraling costs, caused by the immense computing power required to process AI queries.

CNBC reports on one startup, video game company Latitude, which found itself paying hundreds of thousands of dollars a month to process millions of AI requests from users: at least as much as its expenses for human employees.

OpenAI founder Sam Altman, creator of ChatGPT

OpenAI founder Sam Altman, creator of ChatGPT (TechCrunch/Flickr)

Via CNBC:

At its peak in 2021, Walton estimates Latitude was spending nearly $200,000 a month on OpenAI’s so-called generative AI software and Amazon Web Services in order to keep up with the millions of user queries it needed to process each day.

“We joked that we had human employees and we had AI employees, and we spent about as much on each of them,” Walton said. “We spent hundreds of thousands of dollars a month on AI and we are not a big startup, so it was a very massive cost.”

By the end of 2021, Latitude switched from using OpenAI’s GPT software to a cheaper but still capable language software offered by startup AI21 Labs, Walton said, adding that the startup also incorporated open source and free language models into its service to lower the cost. Latitude’s generative AI bills have dropped to under $100,000 a month, Walton said, and the startup charges players a monthly subscription for more advanced AI features to help reduce the cost.

The high cost of AI is a result of its computing requirements — every time an AI returns a response to a prompt, it performs billions of calculations in its mission to deliver a useful answer.

See also  Employee Tension Grows at Facebook, Google, Amazon

Graphics Processing Units, more commonly known as GPUs, make up the hardware that provides the computing power for most AI systems today.

However, the price of just one of Nvidia’s industry-standard GPU chips, the A100, is $10,000 — and the leading AI projects need thousands of them to power their systems.

Allum Bokhari is the senior technology correspondent at Breitbart News. He is the author of #DELETED: Big Tech’s Battle to Erase the Trump Movement and Steal The Election.

costs Massive Meet startups Struggle
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Sam Altman’s OpenAI Claims to Consider Slowing AI Development as Safety Concerns Mount

September 12, 2026

Elon Musk Expresses Skepticism over Viral AI Doom Prediction

September 11, 2026

EXCLUSIVE — Silicon Valley Democrat Turned Trump Supporter Warns Chinese AI Could Shape Americans Through ‘Millions of Small Distortions that Nobody Notices’

September 11, 2026

FBI Detects Argentina Teenager Using ChatGPT to Plan School Shooting

September 11, 2026
Add A Comment

Leave A Reply Cancel Reply

Top Posts

Viral Video Shows Scars Of Conflict In Sudan’s Capital Khartoum

April 26, 2023

JD Vance Gives Into ‘Devil On My Shoulder’ With Cheap Biden Dig

July 2, 2026

Will & Grace’s Eric McCormack ‘Broken-Hearted’ After Costars Miss Broadway Event

August 13, 2023

Phil Collins Reveals Doctors Considered Taking Him Off Life Support

August 2, 2026
Don't Miss

Popular women’s clothing chain closes 177 stores

Finance September 12, 2026

While I buy most of my clothes from Amazon, when I needed a new wardrobe…

Democrats Expect Trump To Cheat In The Midterm

September 12, 2026

‘There’s Three Good Teams at the Top and Then Nothing’

September 12, 2026

China-Philippine Feud over South China Sea Escalates

September 12, 2026
About
About

This is your World, Tech, Health, Entertainment and Sports website. We provide the latest breaking news straight from the News industry.

We're social. Connect with us:

Facebook Twitter Instagram Pinterest
Categories
  • Business (4,399)
  • Entertainment (6,799)
  • Finance (4,951)
  • Health (2,862)
  • Lifestyle (1,931)
  • Politics (4,568)
  • Sports (5,255)
  • Tech (2,661)
  • Uncategorized (4)
  • World (7,006)
Our Picks

Saying We’re Fighting Islamic Theocracy in Iran Is Interpreted as ‘Possible Call to Violence’

May 21, 2026

How Prince William Showed How He Intends to Rule Years Ago

June 1, 2026

Explosive 60 Minutes Report on US Funding of Ukraine: US Paying Salaries of 57,000 First Responders, Subsidizing Small Businesses in War Torn Country(Video) | The Gateway Pundit

September 25, 2023
Popular Posts

Popular women’s clothing chain closes 177 stores

September 12, 2026

Democrats Expect Trump To Cheat In The Midterm

September 12, 2026

‘There’s Three Good Teams at the Top and Then Nothing’

September 12, 2026
© 2026 Patriotnownews.com - All rights reserved.
  • Contact
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.