Artifical Intelligence

How Much Does It Cost To Develop a Chatbot App Like ChatGPT?

How Much Does It Cost To Develop a Chatbot App Like ChatGPT?

It’s true that ChatGPT and other AI-powered chatbots have garnered significant attention and interest since their introduction. OpenAI reported that ChatGPT was able to amass a user base of 1 million within a mere 5 days upon its release in November 2022.

The capabilities of these chatbots to understand and respond to human queries have sparked discussions about their potential impact on various industries and employment. 

As a result, businesses have recognized the importance of incorporating chatbots like ChatGPT into their strategies to stay competitive in the evolving technological landscape.

But what is the cost to develop Chatbot App like ChatGPT?

If I give you a short answer- the ChatGPT app development cost will range anywhere between $80,000 to $500,000. 

Read on for detailed information about how much ChatGPT app development cost.

First, let’s have an overview of what is ChatGPT.

What is ChatGPT And What Sets IT Apart From Other Chatbots?

What is ChatGPT And What Sets IT Apart From Other Chatbots

ChatGPT, developed by OpenAI, stands as an extraordinary creation that excels within the boundaries of a mere chatbot. Harnessing the power of modern tech like natural language processing, this artificial intelligence model, built upon the revolutionary technology of ‘Generative Pre-trained Transformer 3’ (GPT-3), showcases its efficiency in language generation.

Through the skills of deep learning techniques, ChatGPT effortlessly weaves together a tapestry of words, allowing for seamless conversations and insightful responses across an extensive spectrum of topics. Its ability to maintain coherence and consistency in dialogue truly sets it apart.

Besides, with ChatGPT, we are able to achieve the elusive goal of human-like conversation, which was somewhere limitation of other AI chatbots available in the market. 

The following is a quick overview of how ChatGPT differs from other chatbots.

Chatbot ChatGPT
Generation Pre-programmed responses Machine learning-based
Training Limited data Extensive diverse training
Understanding Basic keyword matching Advanced natural language understanding
Response Fixed patterns Learned patterns
Learning Limited adaptation Continuous learning
Conversation Single-turn interactions Multi-turn and complex
Creativity Limited creativity Unique and creative responses
Knowledge Structured data/APIs Training data and information
Development Manual coding required Data-driven training

Also, the ChatGPT app development cost is quite different from other Chatbot app development costs. 

How ChatGPT Was Developed?

How ChatGPT Was Developed?

OpenAI employed a sophisticated training methodology called Reinforcement Learning from Human Feedback (RLHF) to develop the ChatGPT model. The training process was initiated by fine-tuning an initial model through supervised learning. Skilled human trainers took on the dual roles of users and AI assistants to generate a rich dialogue dataset.

To assist the trainers in formulating their responses, the model provided them with suggestions based on their own output. This collaborative effort between trainers and the model resulted in a dataset that combined the dialogue format with the InstructGPT dataset.

To create this model, a comparison dataset was assembled. Randomly selecting a message generated by the model, multiple alternative completions were sampled, and human trainers ranked them accordingly.

Leveraging these AI models, the model underwent further refinement using Proximal Policy Optimization. This iterative process was repeated multiple times, honing the model’s performance and enhancing its conversational abilities.

Through the careful orchestration of RLHF, OpenAI has sculpted ChatGPT into a remarkable language model, adept at engaging in dynamic and meaningful conversations, with each iteration bringing it closer to human-like interaction. Moreover, Open AI development cost $7.9 million initially in 2017, by Open AI.

Characteristics of ChatGPT

ChatGPT exhibits a range of remarkable characteristics that set it apart from traditional chatbots and other AI models. Let’s explore the prominent features that make ChatGPT truly unique.

1. Expansive Vocabulary

With its training on a vast amount of internet text data, totaling approximately 570 GB, ChatGPT boasts an extensive vocabulary. This allows the chatbot not only to recognize common words, terms, and phrases but also to interpret less commonly used and technical vocabulary with proficiency.

2. Contextual Understanding

ChatGPT exhibits a deep understanding of conversation context. It assimilates previous messages, sentences, and entire interactions, leveraging this contextual information to generate responses that align with the ongoing conversation. By considering the broader context, ChatGPT can provide more relevant and coherent replies.

3. Dynamic Language Understanding and Generation

ChatGPT leverages natural language processing (NLP) to comprehend human language in a comprehensive manner, surpassing the limitations of specific commands or keywords. It excels at capturing language subtleties such as sarcasm, irony, puns, and cultural references, enabling it to generate contextually appropriate responses. 

By employing advanced deep learning algorithms, ChatGPT learns intricate language patterns and relationships, enabling it to produce sophisticated and nuanced responses.

4. Multilingual Capabilities

As a versatile tool, ChatGPT supports multiple languages. Its training in diverse language text data enables it to generate responses in various languages, including but not limited to English, French, German, and Spanish. This multilingual capability overcomes language barriers and enhances its accessibility and usefulness.

5. Creative Aptitude

While ChatGPT excels at producing coherent responses, it also possesses a creative flair. The chatbot can generate engaging content such as poems, jokes, puns, film stories, song lyrics, and more, catering to users’ diverse needs for creative expression and entertainment.

6. Self-Improvement Capabilities

ChatGPT is designed to continuously learn, adapt, and improve its performance over time. By actively incorporating user feedback, the chatbot refines its language generation algorithm, fine-tuning its responses to align with user preferences and enhance overall user satisfaction.

Statistics Around Chatbot And ChatGPT

  • Within just two months of its launch, ChatGPT has managed to accumulate 100 million users, making it a popular platform.
  • The market for chatbots is anticipated to grow significantly from its size in 2016 of 190.8 million dollars to around 1.25 billion dollars in 2025.

Statistics Around Chatbot And ChatGPT

  • AI chatbots are presently used by 23% of customer support organizations (Salesforce).
  • At some time, 80% of people have engaged with a chatbot.

Chatted with chatbot

  • Snapchat recently launched My AI on Snapchat+, allowing its 2.5 million subscribers to ask the chatbot questions ranging from dinner recipes to weekend plans.
  • Furthermore, 88% of the traffic on ChatGPT is direct, while 4.22% comes from social media platforms.
  • OpenAI, the parent company of ChatGPT, is valued at $29 billion as of 2023.
  • The launch of ChatGPT has led to an increase of 304 million visitors to the OpenAI website.

Now, getting back to the story, the ChatGPT app development cost.
Cost To Develop a Chatbot App Like ChatGPT

Factors Affecting The Cost of Developing Chatbot Apps Like ChatGPT

Numerous factors play a pivotal role in determining the overall Chatbot app development cost like ChatGPT. Familiarizing yourself with these factors will provide you with a rough estimate of the expenses entailed in Chatbot development. Let’s kick off this journey to understand the cost with these influential factors:

1. Functionality and Complexity

Developing a versatile chatbot app like ChatGPT that seamlessly operates across multiple platforms, such as iOS, Android, and the Web, presents a formidable and complex undertaking. 

Besides, integrating natural language processing (NLP) capabilities into the AI-powered chatbot entails an expensive decision. NLP encompasses the chatbot’s ability to comprehend human language and convert it into machine-understandable structured data. This involves incorporating features like 

  • Chatbot sentiment analysis
  • Tokenization
  • Dependency parsing
  • Entity recognition

Thus, it is not wrong to say that the intended functionality and complexity of the Chatbot greatly impact development costs.

2. Integration with External Systems

Integration with external systems and APIs is crucial for ensuring the smooth and efficient performance of the ChatGPT app. However, the cost and time required to integrate APIs surpass those of a standalone AI-powered chatbot. 

When you hire a mobile app development company, they can integrate your product with third-party services and can provide added benefits to the ChatGPT-like app but can also introduce complexity and higher costs. It is crucial to carefully select third-party services to avoid unnecessary expenses.

If the Chatbot needs to integrate with external systems, such as databases, APIs, or other software, the complexity of integration and the associated costs can vary based on the compatibility and complexity of the systems involved.

3. Development Team Expertise

The process of data analysis in conjunction with AI adds another layer of complexity. Businesses need proficient Chatbot app developers well-versed in AI-empowered tools like:

  • Machine learning 
  • Predictive analysis
  • Chatbots
  • Data analysis algorithms
  • Natural Language Processing
  • Conversational design 

This type of skillset and experience of the development team impacts the development cost. Besides the location and size of your development team can impact the Chatbot app development cost.

The cost of hiring AI developers in India, for example, is lower than the cost of hiring the same skillset in the United States.

Country Hourly rate
United States $100 – $200
United Kingdom $80 – $150
India $20 – $40
Ukraine $30 – $50
Brazil $40 – $70
Philippines $15 – $30

4. Hosting And Storage 

One of the key challenges in multi-platform app development lie in fulfilling diverse hosting requirements, both for cloud and on-premise hosting. Each platform necessitates its unique configuration and infrastructure, contributing further to the overall chatbot app development cost.

Besides, gathering extensive textual data can be expensive, particularly if it involves accessing proprietary data sources or hiring personnel for data annotation. 

Costs for data annotation can range from a few cents to a few dollars per annotation, and the expenses associated with obtaining data can vary greatly depending on the source.

Storage and computational requirements also impact costs, especially when utilizing cloud-based resources like Microsoft Azure and AWS. The expenses for such resources can range from a few hundred to several thousand dollars per month, depending on the duration and extent of resource usage.

5. UI/UX of ChatGPT-like App

The app’s user interface (UI) and user experience (UX) design is crucial aspects that influence the overall cost of developing an app like ChatGPT. While a basic ChatGPT app design may not significantly impact costs, a multifaceted virtual assistant application with advanced design requirements can lead to higher expenses.

Designing an advanced app with attractive graphics, improved user flow, interactive and conversational interfaces, and well-designed buttons involves additional effort and resources. 

The Breakdown of Costs for Developing a Chatbot App like ChatGPT

Cost Component Cost Range (USD)
ChatGPT API license $100 – $400 per month
Development team  $2,000 – $15,000 per developer
Design $500 – $5,000
Features and Functionality $1,000 – $10,000
Ongoing maintenance and upgrades $500 – $5,000 per year
Total $80,000 – $500,000

How To Optimize The Cost of Developing a Chatbot App Like ChatGPT?

Optimizing the cost of developing a groundbreaking app like ChatGPT involves strategic decision-making and leveraging key factors to achieve maximum efficiency and affordability.

#1. Selecting the Perfect Development Partner

Collaborating with a proficient and technologically adept development partner, not only ensures a reliable and cutting-edge end product but also aids in cost optimization by circumventing errors, rework, and budget overruns. 

A competent AI chatbot development partner possesses deep insights into the latest technologies, enabling them to streamline ChatGPT app development costs.

#2. Embracing the MVP Approach

Employing the Minimum Viable Product (MVP) methodology proves advantageous in curbing expenses. By initially developing and releasing the core features of the app, tailored to customer requirements, the MVP approach eliminates unnecessary feature costs. 

Feedback from users then guides subsequent feature additions, ensuring cost optimization in AI-based app development.

#3. Leveraging Cloud-Based Solutions

Harnessing the power of cloud computing emerges as a paramount cost optimization strategy embraced by forward-thinking businesses. Cloud-based solutions offer scalability, flexibility, and affordability, making them an ideal choice for developing an app like ChatGPT.

In the case of an AI chatbot like ChatGPT, partnering with a reliable AI development company not only meets the immense data requirements for training and operating the chatbot but also reduces development costs. 

How To Develop a Chatbot App Like ChatGPT?

Now you know the Chatbot app development cost rough figure, it’s time to move forward to the next step ie. how to develop it.

How To Develop a Chatbot App Like ChatGPT

Step 1:- Define the purpose of the chatbot

What tasks will the chatbot need to perform? What kind of information will it need to access? What kind of user experience are you looking for?

Step 2:- Choose a chatbot development platform

There are a number of different chatbot development platforms available, each with its own strengths and weaknesses. Some popular platforms include Dialogflow, Rasa, and Amazon Lex.

Step 3:- Collect and prepare data

The chatbot will need to be trained on a large dataset of text and code. This dataset should be relevant to the chatbot’s purpose and tasks.

Step 4:- Design the chatbot’s conversation flow

The chatbot should be able to hold a natural conversation with users. The conversation flow should be designed to achieve the chatbot’s purpose.

Step 5:- Train the chatbot

The chatbot can be trained using a variety of machine-learning techniques. Depending on the amount of the dataset and the difficulty of the tasks that the chatbot must perform, the training process may take many hours or even days.

Step 6:- Test and refine the chatbot

Once the chatbot is trained, it should be tested with a variety of users to identify any areas for improvement. The chatbot can be refined by adjusting the conversation flow, the training data, or the machine learning algorithms.

Step 7:- Deploy the chatbot 

The chatbot can be deployed on a variety of platforms, including websites, mobile apps, and voice assistants.

Here are some additional tips for developing a chatbot app like ChatGPT:

  • Use a large and diverse dataset to train the chatbot. The more data the chatbot is trained on, the better it will be able to understand and respond to user input.
  • Use a variety of machine-learning techniques to train the chatbot. This will help to improve the chatbot’s accuracy and performance.
  • Test the chatbot with a variety of users. This will make it easier to spot any areas that need development.
  • Refine the chatbot based on user feedback. This will help to improve the chatbot’s user experience.
  • Deploy the chatbot on a variety of platforms. This will make it possible to reach more people.
  • Developing a chatbot app like ChatGPT can be a complex and time-consuming process. However, by following these steps, you can increase your chances of success.

Why Choose ScalaCode For Chatbot App Development Like ChatGPT?

As pioneers in the technological revolution, we have consistently empowered our clients to achieve unprecedented scale and agility. Through our cutting-edge AI development services, we have liberated data that was once trapped in silos, enabling businesses to unlock their full potential.

Whether it’s developing an edTech app infused with AI capabilities or revolutionizing the day-to-day operations of AI chatbots, our teams of AI developers can help you every step of the way.

With the transformative power of artificial intelligence and machine learning reshaping the business and technology landscape, now is the time to leverage these advancements to your advantage. Take the next step and connect with us to discuss your requirements for a generative AI chatbot. Our experts are eager to explore how we can fulfill your vision and help you stay at the forefront of innovation.


Q1: How much would it cost to build an app with ChatGPT?

That entirely depends on your needs and how complicated the app is. However, the ChatGPT app development cost ranges somewhere from $80,000 to $500,000.

Q2: Which technologies are used in ChatGPT? app?

ChatGPT app uses a number of technologies, including:

  • Natural language processing (NLP)
  • Machine learning (ML)
  • Generative Pre-trained Transformer

Q3: What are the benefits of the ChatGPT app for business?

Some of the business benefits of using the ChatGPT app are:

  • Automate customer service tasks, such as answering questions and resolving issues
  • Improve employee productivity by automating tasks that are typically done manually, such as scheduling appointments and sending emails. 
  • ChatGPT is a game-changer for businesses by analyzing data and providing marketing insights.

Cost To Develop a Chatbot App Like ChatGPT - ScalaCode


Mahabir is the founder and CEO of ScalaCode, a distinguished technology firm that specializes in a comprehensive suite of software development services. These services include Custom Software Solutions, AI & ML, System Integration, Cloud & DevOps, Remote Software Teams, MVP Development, and Web 3.0. With a robust background in technology and over a decade of experience, Mahabir leads ScalaCode in delivering innovative solutions that drive business success. His passion for emerging technologies and commitment to excellence has positioned ScalaCode as a leader in the software development industry.