It is always exciting to see a variety of AI-powered products being released, as it creates healthy competition and provides users with more affordable options that offer a multitude of features.
When it comes to language models, the market is flooded with options to choose from. The two most popular options that have been in the spotlight lately are ChatGPT-4 and Microsoft 365 Copilot. Both of these language models are widely known for their exceptional performance in various tasks in near future. However, which one is more cost-effective? That’s what we will be discussing in this article.
Pricing of ChatGPT-4
Chat GPT-4 is a service offered by OpenAI that allows users to access GPT-4 models for generating conversational responses. The pricing of Chat GPT-4 depends on the number of tokens used for prompts and completions. A token is roughly equivalent to a word.
There are two pricing options: monthly subscription fee and usage-based fee per API call.
Monthly fixed-rate Plan
You can use GPT-4 through ChatGPT Plus, and the usage fee is $20 per month.
Pay-as-you-go Plan (token)
First, you need to join the waitlist for the GPT-4 API. And wait for approval.
Once approved, you will be able to choose GPT-4 from OpenAI’s playground. Or you can use APIs.
The price is:
- $0.03 per 1,000 prompt tokens (about 750 words) for models with 8K context length
- $0.06 per 1,000 completion tokens for models with 8K context length
- $0.06 per 1,000 prompt tokens for models with 32K context length
- $0.12 per 1,000 completion tokens for models with 32K context length
Pricing of Microsoft 365 Copilot
Microsoft 365 Copilot is a new feature that integrates large language models (LLMs), including GPT-4, into Microsoft 365 apps such as Word, Excel, PowerPoint and Outlook.
The pricing of Microsoft 365 Copilot is not clear yet as it is currently in a trial phase for some Microsoft Office customers. However, it may require a subscription to one of Microsoft’s plans such as Microsoft 365 Personal or Business.
Initially, Microsoft is likely to release the GPT-4 to those who use the business plan. As seen in the above image, there are four plans available, and the Standard plan is the one I recommend the most. This is because it is much cheaper than ChatGPT Plus at $12.5 and offers a wide range of GPT-4 features that can be utilized in Office applications.
Moreover, Microsoft plans to make it available for individual subscribers and web apps in the long run, so if the cost is a burden, you can use much cheaper plans after the release, as it will be open to everyone.
Common Disadvantages
There are common drawbacks to both of these leading AI products.
Firstly, they have not been released yet, or you need to wait for sequential participation. It seems that Microsoft will take a little longer.
Secondly, the cost is not insignificant.
However, we expect these issues to be resolved naturally as competition increases and time passes.
Conclusion
I am amazed and delighted to see various AI products being released and competing with each other, which will ultimately benefit us by simplifying our work at a reasonable cost.
If you primarily use chat, it would be a good idea to try OpenAI’s product right away. However, if you do not use APIs, you are likely to use Microsoft’s product because it is much cheaper and can be used intuitively for work.
If you are a developer, both options can be good choices. Of course, you would think that you need to use OpenAI because you have to make API calls, but Microsoft also plans to provide similar features through Power Apps.
Anyway, I hope this helps you make the right choice when you need it. Thank you.
