Breaking News: ChatGPT API Becomes 10X More Affordable

0:00Nash Falls is the relentless new thriller from number one New York Times bestselling author David Baldacci When mild-mannered business analyst Walter Nash is recruited by the FBI to help bring down a global crime network, his life is turned completely upside down. Publishers Weekly says, in Baldacci's long list of heroes, Walter Nash is among the most memorable. Experience the full cast audio production of Nash Falls, led by McLeod Andrews. Available from Hachette Audio wherever audiobooks are sold. Also available in hardcover and ebook. Breaking news with ChatGPT. The chat GPT has just an open AI has just announced they have launched an API for chat GPT.

0:40In addition to this, they have cut the cost by 10 times what the previous model cost on podcast today, we're going to go over this, what its implications are for the AI industry at large. And this is going to be a crazy one because the implications are potentially massive for this. So let's dive into it. So first off with the news, people have been speculating and waiting for ChatGPT to have an API. Essentially, that means that normal developers can integrate ChatGPT into their code. Now, the problem was previously there was something called DaVinci 3, which was what people could implement. And personally, as someone who has multiple AI projects going, I was left using DaVinci 3 for my AI life coach, which is the self pause app.

1:25And we have a bunch of different life coaches on there. But the problem was, originally, we were testing using ChatGPT to help us develop our prompts and to develop our AI for it. But the problem was when you actually went over to DaVinci, it was completely different. ChatGPT was significantly better of a product. So it's kind of hard. You know, we managed to make it work. A lot of other people managed to make it work, but it definitely was not as good as ChatGPT. So this is actually really big news. People are predicting massive waves of people integrating ChatGPT essentially into their products and this is the craziest part when they launched this they have made chat gpt which is significantly better than the previous version davinci 10 times cheaper than davinci like this is absolutely insane so pretty much it's kind of complicated the pricing structure exactly but pretty much chat gpt's api is 0.002 dollars per 1000 tokens and it's kind of hard because a thousand tokens isn't necessarily a thousand words it's kind of like blocks of um text so you know it's kind of hard to break down exactly what that means but just suffice it to say that um da vinci which virtually every single um company that you see that is integrating ai right now um and they're integrating with open ai they're used they're all using da vinci 3 it's like the standard industry standard and that is 0.02 and so now that it's 0.002 10 times cheaper for a more powerful version.

2:57And this isn't just even regular GPT. So ChatGPT runs on something called GPT 3.5. What they've launched is now GPT 3.5 Turbo, which I'm assuming is faster, more efficient. So this is actually crazy, potentially faster, more efficient than ChatGPT, a 10th of the price of the previous version. People have some pretty wild speculations for what this means. So a lot of people are saying that right now, what they're trying to do is lower the cost so much that they're pretty much killing the competition. That's one theory. Someone was running the calculations for this, and it looks like this thing can barely break even.

3:36And so actually what a lot of people are saying is that the cost warps the economics completely to the point that it actually might be better for people to use this than to develop their own in-house fine-tuned large language models, which is crazy. Think about that. chat gpt is essentially giving this away to developers for cheaper than if they were to develop their own ai essentially they're kind of stunting the entire industry um because it doesn't make any sense for you to develop anything on your own when you can do this and people are saying that they're using this as a loss leader to lock out any competitors before they even get off the ground so this is a massive massive deal and like for a little bit of context on this the reason that GPT-3 apps are pretty much everything running on DaVinci, the reason that they've taken off for the past few months before ChatGPT even came out or went viral is because A, DaVinci 3 was released and it was significantly better than, you know, what was there before.

4:38They had what was called DaVinci 2, but it was definitely not as good. I've seen comparisons. And B, the cost was cut from 0.06 cents for a thousand tokens to 0.02 cents for a thousand tokens so the cost was cut by you know what it got like 60 % cheaper or it was a third of the cost so that actually made it so that consumer applications were a lot more feasible without these huge upfront costs so now that we've went from you know they cut it to be a third of the price now they've cut it to be a tenth of that price and you are going to see insane adoption in AI and open AI is going to completely corner this market in my opinion this is game over for Google this is game over for everyone else people are saying how are they able to do this and if you really think about it I think what they're doing right here is a classic play where you know they launched first they went viral they got big they were able to grab 10 billion dollars from Microsoft I think at this point they just made this thing as cheap and as powerful as they possibly could.

5:42They're making partnerships with the biggest companies possible. No one is going to be able to catch up with them. And I think they're just locking the industry up in a bag because if Google tries to compete, they're going to have to go down to way cheap prices. This is going to force people like Google to offer all AI services for free. All the big companies that are going to try to compete with them have to offer all of their AI for virtually free. So what's pretty interesting with this, you know is that this is not gonna be the first time that anyone's had access to these APIs they've actually let companies Snapchat so Snapchat recently said you know they have pretty much ChatGPT integrated into Snapchat and it looks like they were actually one of the beta testers and they were actually able to integrate it they got access to the ChatGPT API before anyone else and they've had all this time to kind of build up and it's actually interesting too the launching of this they allowed snapchat to integrate build up their app their app and launch before chat gpt's api was launched so they kind of let snapchat go ahead and do that and they also did the same thing with quizlet which is pretty interesting i remember using quizlet when i was in college you could get like lists of quizzes people would pretty much save like q a cards kind of online for different quizzes and you could go use that to study.

6:59And so they actually worked with OpenAI over the last three years, originally leveraging GPT-3 across a bunch of different use cases, including vocabulary learning, practice tests. And so with the launch of the ChatGPT API, Quizlet is introducing QChat, which is pretty much a fully adaptive AI tutor that engages students with adaptive questions based on relevant study materials delivered through you know a pretty fun chat experience I think that's a no-brainer and I think that's pretty great another big player they've also integrated with API with before it had this public launch was Instacart so Instacart is pretty much just well if you haven't used it before you can get someone to go and do your shopping for you and Instacart is now going to be integrating alongside chat GPT and they're going to be letting their I think they have about 75 ,000 retail partner store locations and they're going to be helping customers to find recipes write down what their shopping goals are ask about meals all that kind of stuff so just kind of like food integrations on there the other one is Shopify so Shopify has a hundred million users they got access or I guess shoppers but they got access to this API early and they're going to be using it for a new shopping assistant.

8:22So when essentially shoppers search for products, the shopping assistant can help make some personalized recommendations based on what they're saying and the shop's new AI shopping assistant will really just streamline in-app shopping by scanning millions of products and it's going to quickly find what buyers are looking for in a very personal way, how we've seen it. one other last company that also got access to this API early was called Speak so pretty much it's the fastest it's like a language learning app it's the fastest growing English app in South Korea and they're using the whisper API which is one other API that open AI just announced today and it pretty much powers the new AI speaking companion product which is gonna rapidly bring to the rest of the, which they were going to rapidly bring to the rest of the globe.

9:13And so I think whisper essentially is, um, allowing you to talk and it does voice to text. So like, imagine if you could talk to chat GPT and use it like your Alexa, um, that's what they're allowing people to do with this new whisper thing. So really crazy, um, massive, massive, uh, implications for the entire industry. This is going to have some crazy adoption. I'm predicting thousands and thousands of new companies virtually this is this is how i've heard it explained before and i think this is a pretty accurate assessment um chat gpt and ai may not be this thing that like you know all of these new companies are used are are coming out of it exclusively pretty much what this is is like when the internet came around that didn't just mean that exclusively there was new companies you know old companies are able to use the internet and make websites and and be successful off of that and essentially what we're seeing here with this chat gpt api going out um the the prediction is companies that do not find a way to integrate this do not find a way to adapt to this new technology essentially will die um if they don't have the most powerful technology a competitor that is more tech savvy will integrate it will make it a better user experience for the customers and so at this point it's just up to companies to to find out can they integrate chat gpt can they integrate these new AIs to help make their products better.

10:38If they don't, their competitors will and they're going to take advantage. So it's going to be really interesting seeing what happens going forward with all of this new stuff coming out with all of these new APIs. And it's going to be interesting to see if anyone can even get close to catching up to ChatGPT and OpenAI at this point now that they have cut the cost down by 10 times.