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ChatGPT 4.5: Expensive Strategic Lego Block

Key Points

  • ChatGPT 4.5 launched today with substantially higher pricing – about $150 / M tokens for output and $75 / M tokens for input – roughly 10‑25× more than Anthropic’s Claude 3.7 Sonet, making it cost‑prohibitive for most users.
  • Because of the massive compute needed, OpenAI limits 4.5 to Pro‑plan customers for now, and even announced a need for “tens of thousands of GPUs,” a move that coincided with a noticeable dip in Nvidia’s share price.
  • The pricing and compute surge reflect a strategic difference: Claude positions itself as a specialist (especially for code) and can afford a narrower focus, while OpenAI must keep ChatGPT as a universal market leader that covers every use case.
  • OpenAI’s roadmap for 4.5 emphasizes “non‑benchmark” capabilities—emotional intelligence, nuanced style, and surprising creativity—that improve real‑world user experience and are intended to become core building blocks for future models.
  • The speaker argues that 4.5 should be seen as the last “Lego block” before a next‑generation, hybrid model (e.g., a GPT‑5 slated for Q2) that combines lower‑cost inference, reasoning, and the new emotional‑intelligence features into a more compelling, sticky product.

Full Transcript

# ChatGPT 4.5: Expensive Strategic Lego Block **Source:** [https://www.youtube.com/watch?v=KeBy7imDM1A](https://www.youtube.com/watch?v=KeBy7imDM1A) **Duration:** 00:05:26 ## Summary - ChatGPT 4.5 launched today with substantially higher pricing – about $150 / M tokens for output and $75 / M tokens for input – roughly 10‑25× more than Anthropic’s Claude 3.7 Sonet, making it cost‑prohibitive for most users. - Because of the massive compute needed, OpenAI limits 4.5 to Pro‑plan customers for now, and even announced a need for “tens of thousands of GPUs,” a move that coincided with a noticeable dip in Nvidia’s share price. - The pricing and compute surge reflect a strategic difference: Claude positions itself as a specialist (especially for code) and can afford a narrower focus, while OpenAI must keep ChatGPT as a universal market leader that covers every use case. - OpenAI’s roadmap for 4.5 emphasizes “non‑benchmark” capabilities—emotional intelligence, nuanced style, and surprising creativity—that improve real‑world user experience and are intended to become core building blocks for future models. - The speaker argues that 4.5 should be seen as the last “Lego block” before a next‑generation, hybrid model (e.g., a GPT‑5 slated for Q2) that combines lower‑cost inference, reasoning, and the new emotional‑intelligence features into a more compelling, sticky product. ## Sections - [00:00:00](https://www.youtube.com/watch?v=KeBy7imDM1A&t=0s) **ChatGPT 4.5 Pricing Strategy Explained** - The speaker breaks down the steep token costs of the newly released ChatGPT 4.5, compares them to Claude 3.7 Sonnet, explains why it’s limited to Pro users, and discusses the massive compute investment and market positioning behind the model. ## Full Transcript
0:00Chad GPT 4.5 dropped today like an hour 0:04or so ago and we're going to talk about 0:06the strategy because a lot of people are 0:09confused and frankly they're confused 0:11for good reason to start with 4.5 is 0:15expensive and I can put dollars on that 0:17because they price it per million tokens 0:20Claude 3.7 Sonet which is another model 0:22that dropped very recently it dropped 0:24like three days ago it comes in at an 0:26output cost of $115 per million tokens 0:30and an input cost like sending something 0:32in at three bucks per million 0:35tokens by comparison chat GPT 4.5 which 0:39dropped today output cost is 10 times 0:42more 0:43$150 per million tokens the input cost 0:47is $75 per million token Which is vastly 0:50higher than three bucks it's huge the 0:54input cost is 25 times 0:57more the higher computational costs are 1:00real it's so real that Sam Alman could 1:05not release this to anyone except Pro 1:07Plan users right now plus is going to 1:09have to wait apparently they're adding 1:11tens of thousands of gpus which makes it 1:14really funny that Nvidia fell like eight 1:16or 10% or whatever it was today because 1:18like he's literally talking about how 1:20much compute he has to add to serve this 1:22model and people are like why would you 1:26put all this work in to a more expensive 1:29model 1:30when it doesn't 1:32reason because 01 Pro reasons 03 reasons 1:36Claude 3.7 Sonet is this hybridized 1:39model it reasons it doesn't reason 1:41depending on what you need it's focused 1:43on code which is a high value use 1:45case I'll tell you why the play here is 1:49a legol block play chat GPT is a market 1:53leader it is not a challenger Claude is 1:56a challenger Claude needs to specialize 1:58Claude is specializing in code chat GPT 2:02is a market leader and needs to cover 2:04all the bases to lead the market that 2:06means they cannot Just Produce deep 2:08research they cannot Just Produce 01 Pro 2:10for inference and win they have to 2:13produce a model that does everything to 2:16earn the user base they have which is 2:18the only user base in the hundreds of 2:21millions they're the only ones and so 2:24they have to do everything well and what 2:26this is designed to do well is new nuan 2:30stuff that isn't captured on benchmarks 2:32but which chat GPT thinks is a long-term 2:35building block to their success they are 2:38highlighting emotional intelligence they 2:39are highlighting nuanced writing style 2:41the ability to surprise you these are 2:44things that don't show up in an aim eval 2:48but they do show up in real world 2:50interactions for users and the long-term 2:53bet is that they can bring the compute 2:54cost down they can hybridize this with 2:57the other models that they already have 2:59in the stable 3:00and they can produce a gp5 by Q2 that 3:04has emotional intelligence built in 3:06thanks 4.5 and has the other pieces as 3:08well has the reasoning piece has all 3:10this other stuff and so if you're 3:13judging 4.5 by what is released today 3:16you are probably not judging it 3:17correctly you need to look at chat GPT 3:204.5 as the last Lego block in place to 3:25build something that is much more 3:27compelling and sticky as a customer 3:30experience for chat GPT long term and so 3:34chat GPT 3:36567 whatever that's going to be is 3:39dependent on getting these complex 3:41Primitives right and arguably from the 3:44compute cost emotional intelligence 3:46nuance and the ability to surprise you 3:49is extremely compute intensive and that 3:52doesn't really shock me these seem like 3:54really hard things for a machine to do 3:56if a machine can do this very well 3:58that's a really big deal 4:00that is genuinely novel that is an 4:02achievement that is really significant 4:04even if it's hard to measure and so that 4:07is what Sam is doing with GPT 4:104.5 it exemplifies yet again why it's 4:15important to have real world evaluations 4:17and real world conversations about 4:19performance and capabilities because 4:21these benchmarks are just not good 4:23enough these benchmarks don't tell us 4:24these things and so we're going to have 4:26to all get used to this another good 4:29example is Cloud 3.7 people are talking 4:31about the fact that it is built to be 4:33more opinionated with code that is a 4:35designed decision it is a designed 4:37decision that does not show up on evals 4:40but it's really important and you can 4:42disagree with it you can say you want a 4:43more malleable model and you really want 4:46to use 3.5 sonnet or you can agree with 4:49it and say I like the structure this 4:51provides I like that it insists on a 4:53particular sort of way of building code 4:55and I think that that helps me to build 4:57quicker because the scaffolding is in 4:59place you can have opinions but you need 5:01to know what the model does to have 5:03those opinions and we do not have other 5:06than like digging in and talking about 5:08it in places like this good ways to do 5:11that we need better evals anyway that's 5:14GPT 4.5 that's the strategy that's 5:16what's coming you try it out if you're 5:18in the Pro Plan and let me know it's 5:20only in the Pro Plan right now it's 5:22coming to the plus plan next week cheers