GPT-3 Pricing Demystified: Understanding the Costs

As businesses and developers explore the potential of cutting-edge language models like GPT-3 (Generative Pre-trained Transformer 3), understanding the pricing structure becomes crucial. OpenAI, the company behind GPT-3, has introduced various models with different capabilities and costs. In this article, we will demystify the pricing structure of GPT-3, focusing on some of the popular models like GPT-4, GPT-3.5 Turbo, Ada v2, and davinci-002.

GPT-4 Pricing

GPT-4 is the latest iteration in the GPT series and offers impressive contextual understanding. It comes in two variants: 8K context and 32K context. The pricing for GPT-4 varies based on the number of tokens processed.

  • For the 8K context GPT-4, the cost is $0.03 per 1K tokens for the first 90 days, and then it doubles to $0.06 per 1K tokens.
  • On the other hand, the 32K context GPT-4 is priced at $0.06 per 1K tokens initially, and after 90 days, it increases to $0.12 per 1K tokens.

It's important to note that the context refers to the amount of text that the model takes into consideration when generating responses.

GPT-3.5 Turbo Pricing

GPT-3.5 Turbo is another popular model that offers a balance between performance and cost-effectiveness. It is available in two context sizes: 4K context and 16K context. Let's take a look at the pricing details for GPT-3.5 Turbo.

  • For the 4K context GPT-3.5 Turbo, the cost is $0.0015 per 1K tokens for the first 90 days, and then it increases to $0.002 per 1K tokens.
  • Similarly, the 16K context GPT-3.5 Turbo is priced at $0.003 per 1K tokens during the first 90 days, and it rises to $0.004 per 1K tokens thereafter.

GPT-3.5 Turbo provides a cost-effective solution for applications that don't require extremely large context sizes.

Ada v2 Pricing

Ada v2 is a high-performance language model that specializes in generating text in a wide range of domains. The pricing for Ada v2 differs from the other models mentioned above. It is charged at $0.0001 per 1K tokens, which makes it the most affordable option among these models. Ada v2 is an excellent choice for scenarios where budget constraints are a key consideration.

davinci-002 Pricing

davinci-002 is one of the most powerful language models developed by OpenAI. It offers impressive capabilities across various domains. The pricing for davinci-002 is fixed at $0.0020 per 1K tokens. While it may not be as cost-effective as Ada v2, it delivers exceptional performance for complex tasks that require advanced language processing.


Understanding the pricing structure for GPT-3 models is crucial for businesses and developers looking to leverage these language models. The costs vary based on the model and its capabilities. GPT-4 and GPT-3.5 Turbo offer different context sizes and come with varied pricing structures, catering to different needs. Ada v2 provides an affordable option for those on a budget, whereas davinci-002 delivers top-tier performance but at a slightly higher cost. By considering the specific requirements of your project and the associated costs, you can make an informed decision when selecting the most suitable GPT-3 model for your needs.

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