Expenses of building AI-powered SaaS?
I'm curious about AI-powered startups launching every day.
These AI APIs are paid e.g. OpenAI GPT-3.
How does it make it worth building for people? All these startups make money or what? 😲
Having thousands of free users would cost probably hundreds of dollars. How does it make sense?
I was thinking about adding AI to my note-taking app, but I think the cost would be too much for text-autocomplete with AI.
Am I wrong or what's your opinion on that?
Trending on Indie Hackers
My guess is that these companies are building a user base, are attempting to make it sticky and then look for ways to monetise later. There's enough investment-slush that companies could raise off the back of their user growth so making a short-term loss is a part of their business strategy. That's what i'd be doing anyway...
Yes, you're right. In the startup world, there's already a big bubble of investments in early startups not even making money, so I guess it's a similar case with the current AI bubble.
I would be surprised if all those companies are profitable. I would expect that they try to differentiate using "AI" features with the plan to eventually be profitable on the user and then as a whole.
Sounds like a pretty normal plan to grow a startup & business.
Right, as a Solo Founder who doesn't want to invest too much money into early side projects that's why I don't feel that solution is right, but yeah... that's the growing companies world.
Hey Piotr, I agree with you .. I just think it's trending right now so people are trying it but time will shake everyone and only those who make money will be able to continue ..
I guess you're right. People always jump into what's trending, but the biggest fishes will only survive, especially when the cost is high for AI solutions.
Using the OpenAI API to build an AI-powered SaaS can be an effective and cost-effective way to leverage advanced AI capabilities in your product. However, there are still a number of costs that you may need to consider, including:
API usage fees: The OpenAI API has a pay-as-you-go pricing model, so you will need to pay for the API usage as you go. The cost will depend on the specific API and the volume of requests you make.
Hardware and infrastructure: Depending on the scale of your project, you may need to invest in hardware and infrastructure to support your API usage. This could include servers, storage systems, and other hardware and software tools.
Data collection and labeling: You will need a large dataset for input to build and train an AI model. You may need to invest in tools and services to help you collect and label this data and pay for any data sources you purchase.
AI model development: Developing an AI model can be time-consuming and resource-intensive. You may need to invest in software and tools to help you build and test your model and pay for any external consultants or developers you hire to help with the process.
It's important to carefully budget for these and any other costs that may arise as you build and launch your AI-powered SaaS using the OpenAI API. Doing so can help ensure that you have the resources you need to succeed.
This was written by AI. Lol!
OMG. How did you know that?
Is there a directory or place that lists all the new AI powered SaaS popping up?
I see them mostly pop up on my Twitter wall with the #buildinpublic hashtag and sites like ProductHunt, and Betalist.
Not 'all', but that's what I'm focusing on this project. Currently working on improving the usefulness and making it easier for users to do research. AI SaaS are popping up like crazy. If you find any interesting SaaS or build it yourself, feel free to add it without registration.
Recently wrote about it to my subscribers at Micro SaaS HQ
Probably check out https://nichesss.com/ that charges one-time $59 for unlimited content generation. That's a crazy deal considering the costs to generate the content.
Products like CopyAI are doing this at scale, partly using GPT-3 and their own models.