Estimation question
Estimate the daily inference cost of running ChatGPT for its free-tier users.
- OpenAI
- Estimation
- Hard
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What this question tests
Structured estimation combining user scale, usage frequency, and compute cost per query.
How to approach it
- State assumptions: assume roughly 200 million weekly active users, with free-tier users being the large majority, say 150 million.
- Estimate daily active free users: assume 40 percent of weekly actives use it on a given day, roughly 60 million daily active free users.
- Estimate queries per user per day: assume an average of 5 messages per active free user per day.
- Estimate cost per query: assume a blended inference cost of roughly 0.01 to 0.02 dollars per message for a mixed-size model.
- Multiply: 60 million users times 5 messages times an assumed 0.015 dollars equals roughly 4.5 million dollars per day.
What a strong answer includes
- Builds the estimate top-down from daily active users rather than starting from total registered users, which would overstate actual usage.
- States the per-query cost assumption explicitly and acknowledges it varies a lot by message length and model size used for free tier.
- Arrives at a clear daily figure, clearly framed as an order-of-magnitude estimate rather than a precise number.
- Sanity checks the result against known infrastructure spend scale for large AI companies to confirm it is plausible, not off by orders of magnitude.
Common mistakes
- Using total registered or lifetime users instead of daily active users, which inflates the estimate significantly.
- Skipping the per-query cost assumption and jumping to a final number without showing the arithmetic.
Likely follow-up questions
- How would this estimate change if OpenAI moved free-tier users to a smaller, cheaper model?
- What is the biggest lever OpenAI has to reduce this cost without hurting free-tier quality?
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Learn the skill behind it
Chapters of the AI PM course that teach what this question tests.
- Chapter 2: Data fluency: SQL, logs, and reading the truth yourself
- Chapter 9: Prove it paid off: outcomes, economics, and pricing
- Chapter 14: Get the job: the AI PM interview loop