Meta's Free AI Isn't Cheap To Use, Companies Say

Some companies that pay for OpenAI's artificial intelligence have been looking to cut costs with free, open-source alternatives. But these AI customers are realizing that oftentimes open-source tech can actually be more expensive than buying from OpenAI. The Information: Take Andreas Homer and Ebby Amir, co-founders of Cypher, an app that helps people create virtual versions of themselves in the form of a chatbot. Industry excitement this summer about the release of Llama 2, an open-source large language model from Meta Platforms, prompted the duo to test it for their app, leading to a $1,200 bill in August from Google Cloud, Cypher's cloud provider. Then they tried using GPT-3.5 Turbo, an OpenAI model that underpins services such as ChatGPT, and were surprised to see that it cost around $5 per month to handle the same amount of work. Baseten, a startup that helps developers use open-source LLMs, says its customers report that using Llama 2 out of the box costs 50% to 100% more than for OpenAI's GPT-3.5 Turbo. The open-source option is cheaper only for companies that want to customize an LLM by training it on their data; in that case, a customized Llama 2 model costs about one-fourth as much as a customized GPT-3.5 Turbo model, Baseten found. Baseten also found that OpenAI's most advanced model, GPT-4, is about 15 times more expensive than Llama 2, but typically it's only needed for the most advanced generative AI tasks like code generation rather than the ones most large enterprises want to incorporate.

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