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

What Happened to Indonesia’s Booming Tech Sector?

June 23, 2026

Netflix’s ‘American Experiment’ Doc Features Hillary Clinton Calling the Electoral College an ‘Abomination’

June 23, 2026

Newsguard Wants to Empower AI Censorship, Rates Chinese Propaganda as More Reliable than Conservative Media

June 23, 2026
Facebook Twitter Instagram
  • Contact
  • Privacy Policy
  • Terms & Conditions
Tuesday, June 23
Patriot Now NewsPatriot Now News
  • Home
  • Politics

    Vance Takes Center Stage In White House Push To Protect GOP Majority

    June 23, 2026

    House Republicans Threaten Contempt After Dem Cash Cow ActBlue Ignores Subpoenas

    June 23, 2026

    Trump Admin Threatens To Pull Critical Federal Funds Unless States Adopt Election Integrity Measures

    June 23, 2026

    White Democrat Women Dance Across America For Juneteenth

    June 23, 2026

    Joy Reid Claims Black People Aren’t Excited For July 4th, Juneteenth Is The ‘Real Thing’

    June 23, 2026
  • Health

    What To Know About Tests That Promise To Reveal Your Biological Age

    June 23, 2026

    HHS Ebola trial, retatrutide, suicide treatment: Morning Rounds

    June 23, 2026

    This Startup Says It Saves Medicare More Than $2 Million A Week

    June 23, 2026

    7 Signs You Need Physical Therapy (And How To Find the Right Provider)

    June 23, 2026

    Kidney transplant, livestock disease, Texas: Morning Rounds

    June 22, 2026
  • World

    Macron Rejects Migrant Return Hubs, Claims They Go Against EU Values

    June 23, 2026

    U.S. Attacks Alleged Drug Boat, Killing 2 And Leaving 6 Survivors In Eastern Pacific

    June 23, 2026

    Iran MOU Doesn’t Address ‘Very Important’ Ballistic Missiles, Terror Proxies

    June 23, 2026

    DEA Reportedly Did Nothing As Staggering Amounts Of Fentanyl Hit The Streets

    June 23, 2026

    One Dead, Nine in Critical Condition After Train Collision in England

    June 23, 2026
  • Business

    Influential Economic Policy Center Bankrolled By Shady Dating App Founder

    June 19, 2026

    Dem Senator‘s 22-Year-Old Son Raises Eyeballs After Raking In $30 Million Investment

    June 19, 2026

    Jeff Bezos Claims AI Boom Will Actually Lead To Labor Shortages

    June 17, 2026

    Are You Gay Enough To Get A California Utilities Contract? Here’s The Test

    June 17, 2026

    Jersey Mike’s Overtakes Chick-Fil-A As Highest Rated Fast Food Chain

    June 17, 2026
  • Finance

    What Happened to Indonesia’s Booming Tech Sector?

    June 23, 2026

    Houston TX Hot Chicken partners with PizzaExpress for UK expansion

    June 23, 2026

    An Australian View of the New Trump Iran Deal

    June 23, 2026

    MoonPay buys Entendre in digital finance infrastructure push

    June 23, 2026

    U.S. fights with Brazil for China’s giant soybean market

    June 23, 2026
  • Tech

    Newsguard Wants to Empower AI Censorship, Rates Chinese Propaganda as More Reliable than Conservative Media

    June 23, 2026

    Elon Musk’s SpaceX IPO Spurs Momentum for Orbital AI Data Centers

    June 23, 2026

    Netflix’s Mega Podcast Venture Failing to Earn Fans

    June 23, 2026

    Texas Grandma Killed by Tesla Crashing into Home, Driver Claims ‘Autopilot’ Active

    June 22, 2026

    Asbestos Discovered in 1,000 UK Wind Turbines Imported from China

    June 22, 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  One Of World’s Best Soccer Players Signs Contract So Massive It’s Nearly More Than NFL Team’s Yearly Salary Cap

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

Newsguard Wants to Empower AI Censorship, Rates Chinese Propaganda as More Reliable than Conservative Media

June 23, 2026

Elon Musk’s SpaceX IPO Spurs Momentum for Orbital AI Data Centers

June 23, 2026

Netflix’s Mega Podcast Venture Failing to Earn Fans

June 23, 2026

Texas Grandma Killed by Tesla Crashing into Home, Driver Claims ‘Autopilot’ Active

June 22, 2026
Add A Comment

Leave A Reply Cancel Reply

Top Posts

Fugees Rapper Convicted In Political Conspiracy Trial

April 27, 2023

Black activist says conservatives have ‘weaponized’ the word ‘woke’ to make it a ‘polite way of saying the n-word’

March 21, 2023

Josh Gad Makes Israeli Massacre All About Josh Gad

October 10, 2023

Inside the altercation at Lions training camp 

August 3, 2023
Don't Miss

What Happened to Indonesia’s Booming Tech Sector?

Finance June 23, 2026

A few years ago, Indonesia’s tech sector was unambiguously booming. According to Deal Street Asia,…

Netflix’s ‘American Experiment’ Doc Features Hillary Clinton Calling the Electoral College an ‘Abomination’

June 23, 2026

Newsguard Wants to Empower AI Censorship, Rates Chinese Propaganda as More Reliable than Conservative Media

June 23, 2026

Macron Rejects Migrant Return Hubs, Claims They Go Against EU Values

June 23, 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 (4,386)
  • Entertainment (5,266)
  • Finance (3,892)
  • Health (2,330)
  • Lifestyle (1,893)
  • Politics (3,657)
  • Sports (4,621)
  • Tech (2,297)
  • Uncategorized (4)
  • World (5,174)
Our Picks

Mizuho Boosts UnitedHealth (UNH) Target as Managed Care Outlook Improves

June 11, 2026

Lung cancer is America’s deadliest cancer. Yet so few get screened

August 18, 2023

The Art of Not Dealing: Inside China’s 3-Ring Strategy for a Prolonged Trade War

April 15, 2025
Popular Posts

What Happened to Indonesia’s Booming Tech Sector?

June 23, 2026

Netflix’s ‘American Experiment’ Doc Features Hillary Clinton Calling the Electoral College an ‘Abomination’

June 23, 2026

Newsguard Wants to Empower AI Censorship, Rates Chinese Propaganda as More Reliable than Conservative Media

June 23, 2026
© 2026 Patriotnownews.com - All rights reserved.
  • Contact
  • Privacy Policy
  • Terms & Conditions

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