health strategy journal
management, engineering and
technology review
Joaquim Cardoso MSc.
Chief Research and Strategy Officer (CRSO);
Chief Editor and Senior Advisor
July 30, 2023
What are the key takeaways?
Alphabet’s pursuit of generative artificial intelligence (AI) like ChatGPT is facing a significant cost challenge.
- The computing power required for AI-based chatbots such as ChatGPT is much higher than conventional search, resulting in enormous financial burden for Alphabet.
- The computing power involved in AI, like ChatGPT, requires billions of dollars worth of chipsets, making it much more expensive than standard keyword search.
- According to Morgan Stanley, Google’s 3.3 trillion search queries last year cost roughly a fifth of a cent each, which would increase significantly depending on how much text AI like ChatGPT must generate.
- Alphabet’s Chairman John Hennessy confirmed that large language model AI like ChatGPT will cost the company ten times more than a standard keyword search.
Analysts suggest that even if companies like Google and Microsoft manage to generate revenue from chat-based search ads, the technology could still result in several billion dollars of extra costs for Alphabet.
- Optimizing the costs of AI-based chatbots will be crucial for Alphabet, especially as it aims to rival Microsoft’s Bing search engine.
As the scale of AI usage increases, some analysts believe that the costing should become more affordable for companies in the long run.
To continue reading
Business Today
Danny D’Cruze, New Delhi,
Feb 23, 2023
