How much does it cost to use generative Al today? Nothing. You already own a computer and pay for internet access, and OpenAl and others offer limited-use services for free. The substantial cost of accessing the internet 30 years ago meant that users anticipated substantial payoffs. The minimal cost of accessing ChatGPT and other generative-Al systems today means that users don't need much of a payoff, if any, to give it a try.

The same is true of generative Al. The economic value added and labor productivity boosted by generative Al is not measured by how many people use it or how much it costs to create and sustain it. It is measured by economic value added and labor productivity gains — and there is scant evidence that generative Al has moved the needle.

The cost to society of Al chips, and the talent, electricity, water and more needed to manufacture them, currently dwarfs the payoff.

While access to generative Al is relatively cheap, the creation and supply of generative Al is incredibly expensive. Training these models can cost upwards of $100 million and require the newest and most expensive chips from Nvidia 1 NVDA 4.14% and competitors, including AMD T AMD 1.24% and Intel T INTC 0.31%. The cost to society of Al chips, and the talent, electricity, water and more needed to manufacture them, currently dwarfs the payoff.