Microsoft develops AI chip to reduce ChatGPT's $700k daily operational costs

Microsoft is reportedly developing an AI chip, Athena, to reduce the cost of running generative AI models like ChatGPT. ChatGPT requires massive amounts of computing power on expensive servers to answer queries, which can cost up to $700,000 a day to run due to "expensive servers." Companies using OpenAI's language models have been paying steep prices for years. The high cost is why some companies have opted to switch to cheaper alternatives. Microsoft's AI chip could be released for internal use by Microsoft and OpenAI as early as next year.