GPT-3 Prices Drop by ½ to ⅔

Price Change Arrives as Competition and Use Rises

OpenAI announced it is dropping prices for using GPT-3 by as much as 67% for use of its language models starting in September. Right now, it costs about 6 cents per 750 words for the most sophisticated of the GPT-3 language models. That will be 2 cents beginning next month. Another model that costs about 0.8 cents per 750 words will drop in half to 0.4 cents.

Synthetic text generation from the most prominent player in the industry is about to get a whole lot cheaper. This will help several of the companies using GPT-3 as part of their product grow (read full stories here and here).

Competition Grows

This move may be a reflection of improved efficiency at OpenAI, but it no doubt also is motivated by growing competition. There are several open source solutions that companies can access for free if they are willing to invest in development and cloud processing costs. Probably more pressing from OpenAI’s perspective, Google, Meta (Facebook), Nvidia, DeepMind, and others are all vying for the large language model (LLM) text generation crown.

This is good for companies such as Paragraph AI that are using GPT-3 and are early in their paid customer acquisition journey. Lower costs generally lead to faster market expansion as more novel applications become cost effective. I’d watch out for a rapid rise in startups and new products employing GPT-3 and other LLMs.

It’s another corner of synthetic media poised for rapid growth.