ChatGPT Costing Simplified: Real Costs

Let's dive into the pricing structure of AI-powered applications that utilize OpenAPI services (such as ChatGPT and APIs keys). In this post, I aim to provide you with a thorough understanding of how these applications are priced. But it doesn't stop there, I will also walk-through real-world examples and case studies to give you valuable insights. One intriguing case study we'll focus on is the analysis of a mobile app called yeso.app, in this article "how build ai mobile application based real life" I will reveal the undisclosed expenses linked to integrating an AI application, now, I will dive-deep into AI costings. By the time you finish reading this post, you'll have a comprehensive knowledge of AI pricing and be well-prepared to make informed decisions for your own projects.

The Realm Of OpenAPI Pricing Models

If you're curious about the cost of using ChatGPT, it's not a straightforward answer. OpenAI provides a range of subscription plans for ChatGPT, catering to different types of customers. These plans include both paid and free options, designed for individuals, nonprofits, small- and medium-sized businesses, educational institutions, and enterprises. The pricing structure can vary depending on the specific needs and requirements of each customer segment. In short, The pricing model used by GPT can be quite complex to grasp. OpenAI determines the prices of its models by tokens, which are later translated into words. It's crucial to to breaking down the ChatGPT API Cost, so you have a clearer understanding of how much your project might cost. By providing simple and applicable examples, I will assist you in accurately estimating expenses to keep your project on track financially viable.

ChatGPT Pricing Models

ChatGPT free

ChatGPT Free offers limited features for individual users, however, OpenAI has recently launched enhanced capabilities and more advanced generative AI models, resulting in significant enhancements. ChatGPT Free users now have access to OpenAI's premium GPT-4o model, which is enriched with data from the web. Additionally, users can utilize the GPT Store, upload various files and images, and ask questions. Depending on the volume of requests, users may face daily usage limits on the GPT-4o model. In such instances, users will temporarily be switched to OpenAI's GPT-3.5 model, which is less powerful.

ChatGPT Plus

ChatGPT Plus is designed for individual users seeking a more advanced version of ChatGPT. Priced at $20 per month, ChatGPT Plus provides a significantly higher capacity compared to the free version. Subscribers also enjoy early access and priority usage of newer tools such as OpenAI's macOS client for ChatGPT. Additionally, ChatGPT Plus offers an enhanced data analysis feature powered by GPT-4o. This feature enables users to generate interactive charts and tables from their datasets. Conveniently, users can directly upload files for analysis from Google Drive, Microsoft OneDrive, or their devices.

The ChatGPT Team

ChatGPT Team subscription is designed for small businesses or organizations looking to have multiple licenses and access collaborative features. With ChatGPT Team, users have dedicated workspace, admin tools for team management, and access to OpenAI's latest models. The subscription costs $30 per user per month or $25 per user per month billed annually for up to 149 users. Additionally, users can analyze, edit, and extract information from files using ChatGPT, as well as build and share custom apps within their team based on OpenAI models. These custom apps can be tailored for specific use cases, departments, or team data.

ChatGPT Enterprise

ChatGPT Enterprise subscription is a specialized plan offered by OpenAI for large organizations that require more than 149 ChatGPT licenses. This corporate-focused plan provides enhanced features and capabilities tailored to meet the needs of businesses. While the exact pricing for ChatGPT Enterprise is not publicly disclosed, it is reported to be approximately $60 per user per month. However, it is important to note that a minimum of 150 users and a 12-month contract are required. As part of ChatGPT Enterprise, has access to shareable conversation templates, allowing you to build internal workflows and bots using ChatGPT. ChatGPT Enterprise is tailored to meet the needs of large organizations, providing advanced features, support, and compliance options to ensure a seamless and secure experience.

OpenAI for Nonprofits

ChatGPT Nonprofits represents OpenAI's foray into nonprofit technology solutions, offering a range of discounts for eligible organizations. Nonprofits can access ChatGPT Team at a reduced rate of $20 per user per month, while larger nonprofits can benefit from a 50% discount on ChatGPT Enterprise, bringing the cost to around $30 per user. Eligibility criteria are strict, with applications currently not being accepted from academic, medical, religious, or governmental entities worldwide.

ChatGPT API Costings

ChatGPT API is an interface provided by OpenAI that allows developers to integrate the ChatGPT model into their own applications. It enables developers to make API calls to the ChatGPT model, that enables seamless integration of natural conversation capabilities into your applications, chatbots, and services. This solution not only saves time but also improves user experiences through customizable and scalable AI interactions. OpenAI offers several versions of the ChatGPT model through its API, including GPT-3.5.

Examples of Consuming ChatGPT API

ChatGPT API for?Writing Blogs

In this given scenario, the requirement is to write blogs of text every day, without fail, for a total of 30 days

Assumptions:

Use ChatGPT to draft articles.

Costs:

Each article is around 750 words, which costs $0.002 to generate using the ChatGPT API.

As an example, this will be 1 article, the monthly cost would be $0.06 (since $0.002 per article multiplied by 30 days equals $0.06).

ChatBot?with 100 customers (Chatbot)

Consider a scenario where you employ a customer service chatbot for your business. Your business boasts a clientele of 100 active customers. Consequently, each of these 100 customers interacts with your chatbot on a daily basis, engaging in a conversation that spans approximately 10 minutes. Assuming that a 10-minute conversation roughly translates to 500 tokens (although this may vary depending on the intricacy and length of responses), this serves as a benchmark for evaluating the chatbot's performance.

Assumptions:

• Each 10-minute conversation uses about 500 tokens.
• The cost for ChatGPT API is $0.002 per 1000 tokens.

Token Usage:

• 100 customers, that’s 100 x 500 = 50,000 tokens used daily.
• 1000 tokens are used: 50,000 tokens / 1,000 = 50 sets, therefore 50 x $0.002 = $0.10.

Estimate Costs:

• 100 customers has a 10-minute conversation with your chatbot every day,?it would cost you around 0.10 cents per day.

ChatBot 500 customers (Placing order)

In this particular case study, the customer utilizes an application that involves a 5-minute conversation to initiate an order, followed by a brief period of additional interaction. As a result, we can calculate that the overall interaction typically amounts to an average of 300 tokens per customer. Here are the costings for this case:-

Assumptions

• Each 5-minute conversations
• Each customer uses about 300 tokens.
• With 500 customers

Token Usage:

• With 500 customers, that’s 100 x 500 = 50,000 tokens used daily.
• With 500 customers, that’s 500 x 300 = 150,000 tokens daily.

Estimated Cost:

• ChatGPT API costs $0.002 per 1000 tokens
• The daily cost is 1000 tokens / 1,000 = 500 sets, therefore 500 x $0.002
• Daily cost for using the ChatGPT API with 500 customers would be $0.30?
• Monthly cost, assuming 30 days in a month, would be around $9.00.

Chatbot with 500 customer (yeso.app)

In this specific case study, Molly, a AI chatbot that had been integrated into a mobile application called yeso.app. Molly has been specifically designed to Assist parents, children, solicitors, and the family court system. It has a predefined target audience, which enables it to provide precise and accurate responses. Molly's main objective is to assist individuals facing challenging situations, particularly those involving custody issues and the well-being of children. This aspect adds a significant level of complexity to the application, making it far more intricate than simple tasks like ordering or creating content.

Molly is assumed to have a 15-minute discussion, followed by a brief period of additional engagement twice a day, resulting in a total of approximately 30 minutes per day. The diagram provided below illustrates the overall structure of the ChatBot solution.

Note that diagram provided above has been simplified. But the solution consists of multiple components, and each service within the solution has its own unique complexity that caters to its specific need and audiences. Before we discussing costings for the above, lets look at Key takeaways from this solution, they are:-

• AI project costs are influenced by a variety of factors including development, hardware, data quality, feature complexity, and integration with existing systems for complex solutions.
• The ongoing maintenance of AI systems encompasses updates, computational resources, training models, and compliance with regulations, which can be streamlined through cloud services and efficient management strategies.
• The cost of AI can vary significantly depending on whether it’s developed in-house or by external experts, and a measured, lean approach to AI adoption can offer savings and long-term value, with ROI being measured by both tangible and intangible benefits.
• Costs of data collection, preparation and cleaning
• Wages for skilled AI engineers – expenses related to ongoing training for existing staff to stay updated with the latest AI technologies and methodologies
• Cybersecurity measures and Costs related to ensuring that AI practices comply with relevant regulations, ethical standards, and privacy laws.
• Integrating AI with existing systems may require additional expenses for cloud solution, optimization resources, or specialized hardware
• The cost of AI software development increases relative to the range of features and capabilities provided. Therefore, the cost of implementing AI can range from a basic version to a more advanced, feature-rich option.

Assumptions:

Customer interacts with the chatbot for a total of 15 minutes twice a day, total 60 minutes.

Interaction uses about 1000 tokens (vary on conversation complexity).

Here’s how we break it down:

Daily Token Usage:

Each interaction uses about 1000 tokens.

Since each customer interacts twice a day, that’s 1000 tokens x 2 = 2000 tokens per customer per day.

With 500 customers, that’s 500 x 2000 = 1,000,000 tokens daily.

Daily Cost:

ChatGPT API costs $0.002 per 2000 tokens.

The daily cost is 1,000,000 tokens / 2,000 = 500 sets, therefore 500 x US $0.002 x 2 , This should US 2$ per day

Monthly Cost:

If we assume that there are 30 days in a month, the daily cost should be multiplied by US $2 for every customer who engages with the chatbot on a daily basis. Consequently, the estimated monthly cost, based on a 30-day month, would amount to approximately US $60.

Hidden Cost To Consider

Maintenance costs

It recommend considering maintenance costs at the beginning of app development. Many application agency offer a complimentary maintenance period following the app's launch. Nevertheless, it is wise to purchase an extra maintenance period from the same developer prior to the app's release. Typically, app maintenance involves:

• Rectifying bugs
• Enhancing code efficiency
• Boosting stability and performance
• Providing assistance for new operating system versions
• Supporting the most recent version of third-party services.

Infrastructure costs

Data storage, data delivery, and app hosting are all encompassed within the infrastructure expenses. Any additional components above these factors contribute to an increase in both the cost and complexity of a project. Several elements make up the infrastructure cost, such as servers, development tools, and libraries. The hosting cost of an app is determined by various factors, including the type of content or app data (whether it is text or media like photos, videos, or audio), the number of active users, and the storage requirements.

To prevent any unexpected surprises, it is advisable to have a thorough discussion about the infrastructure costs and subscriptions with the app developers beforehand.

Other costs

Depending on the stage, there would naturally be other factors to consider. For instance, if you are launching the app, you would need to account for costs related to marketing, design, and development, among others. This article "how build ai mobile application based real life" covers some of other expenses.

Conclusion

In summary, the expenses associated with utilizing the ChatGPT API can vary significantly depending on the extent and frequency of the interactions it processes. For instance, in situations like implementing a customer service chatbot for a company or integrating a conversational interface into a project, the expenses are directly linked to the number of tokens utilized in each interaction.

For a business that experiences a moderate level of customer interactions, such as a restaurant with 500 customers engaging in brief conversations on a daily basis, the cost remains relatively low. On the other hand, for businesses with higher-frequency interactions customer engages with the chatbot twice daily for longer durations, the cost escalates over time. These real cases illustrate that while the ChatGPT API efficiently handles small to moderate quantities of text-based interactions at a reasonable cost, the expenses surge with increased usage. Therefore, businesses must carefully consider the balance between the efficiency and value offered by these AI tools and their operational expenses. It is crucial for businesses to strategize the utilization of the ChatGPT API in a manner that is both economically viable and proficient in meeting the requirements of their customers.

Finally, It is essential to carefully evaluate how ROI can be determined when analyzing the expenses associated with an AI project, which encompass both development and maintenance costs, against the advantages it brings. These advantages may consist of heightened productivity, decreased operational expenses, or increased sales due to enhanced customer interactions.

Nevertheless, the assessment of ROI in AI investments extends beyond mere financial gains. It also encompasses strategic advantages, like attaining a competitive edge, refining decision-making procedures, or boosting innovation capabilities. Consequently, a thorough ROI assessment should encompass both quantifiable and non-quantifiable benefits.

I hope this article provides you with a wealth of information to consider when calculating the costs related to AI, and there is a significant amount to ponder. Hopefully, the insights shared above have shed light on how to effectively budget for your project.

Thank you so much for taking the time to read through this article.

NEXT: In the forthcoming article, I will delve into the technical aspects encompassed in the creation of a Chatbot solution employing the #OpenAI #ChatGPT #APIs. This write-up will offer a comprehensive exploration of Cloud infrastructure employing AI and #Microservices AI development prompt engineering and RAG patterns, showcasing their execution in #Microsoft #dotnet core and #WebAPI on #Azure. The entire discourse will revolve around a practical scenario featuring a mobile application named yeso.app, which presents a Chatbot named Molly.

#AI #chatgpt #chatbot #aidevelopment #architecture #statups #aiengineering #promptengineering #mobiledevelopment #yeso-app #ai-rag-patterns