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