Home
/
Tutorials
/
Getting started with AI
/

Steps to create ai tools like chat gpt and gemini

Insights on Developing AI Tools | Startups Weigh Costs and Strategies

By

Sophia Tan

Feb 24, 2026, 06:17 AM

Updated

Feb 24, 2026, 11:40 AM

2 minutes needed to read

A group of diverse people brainstorming ideas to build AI tools on a whiteboard
popular

A startup aims to build proprietary AI tools similar to ChatGPT and Gemini, but financial and technical hurdles loom large. Experts and community members raise questions over the feasibility and planning needed for such a venture.

Realities of AI Development

These ambitious founders seek guidance on crafting their own AI systems. However, discussions in various forums highlight skepticism about the overall approach and sustainability of their plans.

Financial Demands of AI Tools

Conversations reveal that launching a large language model (LLM) requires hefty investment. A common sentiment echoes:

"You need 200-300 million USD for a large model pre-training."

Costs for compute resources are alarming, with community voices noting that:

  • Pre-training expenses: Approximately $2 per hour for cloud GPUs, adding up quickly.

  • Inference charges: They vary based on the architecture deployed.

Furthermore, one commentator emphasized the importance of purpose, stating, "Before building something like ChatGPT, ask why and for whom," suggesting that focusing tightly on use cases can save resources. Another highlighted that some startups might just want a wrapper around existing models instead of building from scratch.

Expertise is Essential

There's a clear consensus on the need for a skilled team. One user shared the wisdom:

"Hire someone who has done something similar; experience is key."

Gathering a knowledgeable group is vital to circumnavigate the hurdles that lie ahead for such endeavors.

Exploring Alternative Development Paths

Several users suggested leveraging existing open-source models for initial development. Fine-tuning capabilities available via platforms like Hugging Face can reduce financial strain while still allowing innovation.

Key Points to Consider

  • πŸ’° Developing a competitive AI tool could cost $200 million or more.

  • πŸ” Emphasizing a clear use case can deter resources from being wasted.

  • πŸ’» Access to experienced engineers is crucial for ambitious AI projects.

The ambition to launch in-house AI capabilities runs into substantial challenges, as many continue to caution that the reality is often less feasible for most startups.

Paths Forward for AI Startups

As financial demands remain significant, many startups may pivot toward fine-tuning existing models rather than forging their own. Given rising costsβ€”estimated to peak at around $300 millionβ€”collaboration and partnerships with tech firms could become pivotal strategies, fostering resource-sharing and enhancing the chance of successful launches. In the long run, innovating off existing technologies might pave a more sustainable path in the competitive AI market.