“AI might be costly for startups” - CEO Anthropic Dario Amodei Know Why!

Jul 09, 2024 Poulami Saha

Experts suggest affording AI might break your bank

After several initiatives taken for the adaptation of Artificial intelligence (AI) on a large scale, experts seem to suggest that developing AI might cost a bomb.

Dario Amodei, the CEO Anthropic said that most startups won’t be able to afford to sign up for the AI race.

‘In Good Company’ podcast interview with Norges Bank CEO Nicolai Tangen, Anthropic CEO Dario Amodei went into the nuts and bolts of AI development

During the interview Dario Amodei explained how much it takes to get an AI model off the ground of $18 billion startup.

Amodi said that training an AI model costs around $100 million, but “there are models in training today that are more like a billion.”

He also claimed that the current AI model prices will soon be considered on the lower end compared to what it will cost to develop competitive AI in the next few years.

Dario Amodei thinks that this rise in the price will happen in 2025, 2026, maybe 2027. He further added that there is a good chance that by that time we will be able to get models that are better than most humans at most things.

He seems to believe that the high cost structure of AI models sets a high bar for startups who want to add their in-house models on OpenAI or Anthropic.

Last week a Google report revealed its emissions rose by nearly 50% in four years because of AI. Amodi believes that this could also contribute to the high cost structures of AI models