Close Menu
TechTost
  • AI
  • Apps
  • Crypto
  • Fintech
  • Hardware
  • Media & Entertainment
  • Security
  • Startups
  • Transportation
  • Venture
  • Recommended Essentials
What's Hot

US government bans new foreign-made humanoids, robot dogs and solar inverters, citing national security risks

Hint, a new AI startup co-founded by Martha Stewart, offers an AI assistant to homeowners

Google brings age proofing technology to Android developers around the world

Facebook X (Twitter) Instagram
  • About Us
  • Contact Us
  • Privacy Policy
  • Terms and Conditions
  • Disclaimer
Facebook X (Twitter) Instagram
TechTost
Subscribe Now
  • AI

    Hint, a new AI startup co-founded by Martha Stewart, offers an AI assistant to homeowners

    29 July 2026

    Data centers may experience temporary power outages to prevent power outages across the larger US grid

    28 July 2026

    Are brain waves the next unlock for natural artificial intelligence?

    27 July 2026

    Librarians host viral ‘Avoid AI’ workshops for people fed up with big tech

    26 July 2026

    I tested OpenAI’s new AI keyboard — which will be fun for some coders and a little overwhelming for everyone else

    25 July 2026
  • Apps

    Google brings age proofing technology to Android developers around the world

    29 July 2026

    Apple sued after alleged App Store encryption scam cost users $1.8 million

    28 July 2026

    Anthropic updates Claude voice mode with more capable models

    27 July 2026

    Bluesky’s AI assistant Attie expands into an open social research tool

    26 July 2026

    Why Cognition bought Poke: AI personality becomes a competitive advantage

    26 July 2026
  • Crypto

    Sam Altman’s biometrics startup World raises $52.5 million through crypto sale

    24 July 2026

    Venice AI goes unicorn with $65M Series A as first privacy AI platform takes off

    1 July 2026

    Crypto Exchange OKX wants AI agents to hire and pay each other

    30 June 2026

    Startup Battlefield 200 applications close today

    27 May 2026

    5 days left: Save up to $410 on Disrupt 2026 passes

    25 May 2026
  • Fintech

    TechCrunch Disrupt 2026’s new Smart Money Stage explores fintech, payments, artificial intelligence and everything

    25 July 2026

    Don’t want to invest in Elon Musk? Two new ETFs expressly exclude him

    10 July 2026

    India’s payments chief believes artificial intelligence will play a big part in the next era of digital payments development

    28 June 2026

    Early Bird pricing ends tonight for the Founder Summit

    26 June 2026

    4 days left to save up to $190 on Founder Summit 2026

    23 June 2026
  • Hardware

    Apple launches ‘Upgrade’ device rental program in partnership with Klarna

    29 July 2026

    Ozlo’s Sleepbuds 2 builds on Bose’s legacy of sleep headphones

    29 July 2026

    AI chip startup Etched defies skeptics, hits $10.3 billion valuation from big-name investors

    24 July 2026

    After a shocking quarter, IBM insists that artificial intelligence is not killing the mainframe

    23 July 2026

    Light made a flip phone — it’s colorful and cheap

    22 July 2026
  • Media & Entertainment

    HBO Max embraces vertical video with a new “Shorts” stream.

    29 July 2026

    Music streamer Deezer says more than 50% of daily uploads are generated by AI

    27 July 2026

    Substack’s new tool lets you know who’s writing their newsletters with AI

    26 July 2026

    Kalshi demands Netflix take down trailer for ‘Prediction Games’ documentary.

    26 July 2026

    Amazon brings games to Prime Video

    24 July 2026
  • Security

    US government bans new foreign-made humanoids, robot dogs and solar inverters, citing national security risks

    29 July 2026

    Microsoft launches its first cybersecurity model, as well as a new cyber security agency system

    29 July 2026

    PSA: The conversations and artifacts shared by Claude may have ended up on Google

    28 July 2026

    The hacker who humiliated spyware makers and was never caught

    25 July 2026

    Hugging Face confirms breach of internal datasets and credentials, prompts users to take action

    25 July 2026
  • Startups

    Antares raises $470 million to build nuclear reactors for the US military

    27 July 2026

    Insurance startup Corgi reportedly raises more money to $4 billion – its third round in 8 weeks

    26 July 2026

    Build publicly, fail publicly: what it’s like to be a founder under 20 right now

    25 July 2026

    Prentis, new AI lab co-founded by Reid Hoffman and Mark Pincus in talks to raise $100 million

    25 July 2026

    Meet the judges who will crown Australia’s next startup

    24 July 2026
  • Transportation

    Rivian is suing the US government for ‘full refund’ of Trump tariffs

    27 July 2026

    TechCrunch Mobility: Uber is betting on its former CEO

    26 July 2026

    Volkswagen engineers charged with insider trading linked to the Rivian consortium

    25 July 2026

    SpaceX launches new V3 Starlink satellites but suffers another booster failure

    25 July 2026

    Tesla’s door handles may prompt new safety rules in the US

    24 July 2026
  • Venture

    Europe got its own TBPN-style live show and everyone is looking for a guest spot

    28 July 2026

    Edtech platform raises $4.5 million to help teach students how to code vibe

    23 July 2026

    Travis Kalanick’s robotics company raises $1.7 billion, led by a16z

    23 July 2026

    Cascade raises $3.5 million to help construction companies find and win projects

    22 July 2026

    StrictlyVC returns to New York on September 10 to celebrate a huge year for the city’s startup community

    21 July 2026
  • Recommended Essentials
TechTost
You are at:Home»AI»AI training data comes at a price only Big Tech can afford
AI

AI training data comes at a price only Big Tech can afford

techtost.comBy techtost.com1 June 202408 Mins Read
Share Facebook Twitter Pinterest LinkedIn Tumblr Email
Ai Training Data Comes At A Price Only Big Tech
Share
Facebook Twitter LinkedIn Pinterest Email

Data is at the heart of today’s advanced AI systems, but it’s increasingly expensive — putting it out of reach for all but the wealthiest tech companies.

Last year, James Betker, a researcher at OpenAI, wrote one post on his personal blog about the nature of generative AI models and the datasets they are trained on. In it, Betker claimed that the training data—not the design, architecture, or any other feature of a model—was the key to increasingly sophisticated, capable AI systems.

“Trained on the same data set for a long time, almost every model converges to the same point,” Betker wrote.

Is Betker right? Is training data the biggest determinant of what a model can do, whether it’s answering a question, drawing human hands, or creating a realistic cityscape?

It’s certainly plausible.

Statistical machines

AI production systems are basically probabilistic models — a huge pile of statistics. They guess based on huge amounts of examples which data makes the most “sense” to put where (eg the word “go” before “to the market” in the sentence “I go to the market”). It seems intuitive, then, that the more examples a model has to follow, the better the performance of models trained on those examples.

“It seems that the performance gains come from data,” Kyle Lo, senior applied research scientist at the Allen Institute for AI (AI2), an artificial intelligence research nonprofit, told TechCrunch, “at least when you have a solid training organization. .”

Lo gave the example of Meta’s Llama 3, a text generation model released earlier this year that outperforms AI2’s own OLMo model, despite being architecturally very similar. Llama 3 was trained on significantly more data than OLMo, which Lo believes explains its superiority in many popular AI benchmarks.

(I’ll point out here that the benchmarks widely used in the AI ​​industry today aren’t necessarily the best gauge of a model’s performance, but outside of quality tests like ours, it’s one of the few measures it has going on.)

This is not to say that training on exponentially larger data sets is a sure path to exponentially better models. The models operate on a “garbage in, garbage out” paradigm, Lo notes, and so curation and data quality matter a lot, perhaps more than sheer quantity.

“It is possible that a small model with carefully designed data will perform better than a large model,” he added. “For example, Falcon 180B, a large model, is ranked 63rd in the LMSYS benchmark, while Llama 2 13B, a much smaller model, is ranked 56th.”

In an interview with TechCrunch last October, OpenAI researcher Gabriel Goh said that higher-quality annotations contributed significantly to improved image quality in DALL-E 3, OpenAI’s text-to-image model, over its predecessor DALL-E 2. This is the main source of improvements,” he said. “Text annotations are much better than they were [with DALL-E 2] — it’s not even comparable.”

Many artificial intelligence models, including DALL-E 3 and DALL-E 2, are trained by having human annotators label data so that a model can learn to correlate those labels with other, observed features of that data. For example, a model fed many cat images with annotations for each breed will eventually “learn” to associate terms such as short tail and short hair with their special visual characteristics.

Bad behaviour

Experts like Lo worry that the growing emphasis on large, high-quality training data sets will concentrate AI development among the few players with billion-dollar budgets who can afford to acquire those sets. Significant innovation in synthetic data or fundamental architecture could disrupt the status quo, but neither seems to be on the near horizon.

“Overall, entities that govern content that is potentially useful for AI development have incentives to lock down their material,” Lo said. “And as access to data closes, we’re essentially blessing some early movers to get data and move up the ladder so that no one else has access to data to catch up.”

Indeed, where the race to collect more education data hasn’t led to unethical (and perhaps even illegal) behavior such as surreptitiously hoarding copyrighted content, it has rewarded tech giants with deep pockets to spend on licensing data.

Artificial intelligence generation models like OpenAI are primarily trained on images, text, audio, video, and other data — some copyrighted — taken from public web pages (including, problematically, those generated by AI). The OpenAIs of the world claim that fair use protects them from legal retaliation. Many rights holders disagree — but, at least for now, there’s not much they can do to prevent the practice.

There are many, many examples of artificial intelligence builders acquiring massive data sets through questionable means in order to train their models. OpenAI According to reports transcribed more than a million hours of YouTube video without YouTube’s blessing—or the blessing of the creators—to power the flagship GPT-4 model. Google recently expanded its terms of service in part to allow public use of Google Docs, restaurant reviews on Google Maps, and other online material for its AI products. And Meta is said to have considered risking lawsuits trains her models to IP-protected content.

Meanwhile, large and small companies rely workers in third world countries paid only a few dollars an hour to create annotations for training sets. Some of these commenters — employed by mammoth startups like Scale AI — work literally days to complete tasks that expose them to graphic depictions of violence and gore with no benefits or guarantees of future gigs.

Rising costs

In other words, even the above data offerings aren’t exactly conducive to an open and fair AI ecosystem.

OpenAI has spent hundreds of millions of dollars licensing content from news publishers, media libraries, and more to train its AI models — a budget far larger than that of most academic research groups, nonprofits, and startups. Meta went so far as to weigh a takeover of publisher Simon & Schuster for the rights to e-book excerpts (eventually, Simon & Schuster sold to private equity firm KKR for $1.62 billion in 2023).

With the purchase of AI training data to be expected cultivate from about $2.5 billion now to nearly $30 billion within a decade, data brokers and platforms are rushing to charge top dollar — in some cases over the objections of their user bases.

Media library provided by Shutterstock inked deals with AI vendors ranging from $25 million to $50 million, while Reddit claims to have made hundreds of millions from licensing data to organizations like Google and OpenAI. Few platforms with abundant data accumulated organically over the years they do not have He signed deals with prolific AI developers, it seems — from Photobucket to Tumblr to Q&A site Stack Overflow.

It’s the platforms’ data for sale — at least depending on the legal arguments you believe. But in most cases, users don’t see a single penny of the earnings. And it hurts the wider AI research community.

“Smaller players will not be able to afford these data licenses and therefore will not be able to develop or study AI models,” Lo said. “I am concerned that this could lead to a lack of independent scrutiny of AI development practices.”

Independent efforts

If there is a ray of sunshine through the darkness, it is the few independent, non-profit efforts to create massive data sets that anyone can use to train a productive AI model.

EleutherAI, a non-profit grassroots research group that started as a loose Discord collective in 2020, is working with the University of Toronto, AI2, and independent researchers to create The Pile v2, a set of billions of text snippets mostly sourced from the public domain sector .

In April, the startup Hugging Face released FineWeb, a filtered version of Common Crawl—the eponymous dataset maintained by the nonprofit organization Common Crawl, consisting of billions upon billions of web pages—that Hugging Face claims improves the model’s performance on many reference points.

Some efforts to release open training datasets, such as the LAION team’s image sets, have struggled with copyright, data privacy, and more. equally serious ethical and legal challenges. But some of the most dedicated data curators are committed to doing better. Pile v2, for example, removes problematic copyrighted material found in its original dataset, The Pile.

The question is whether any of these open-source efforts can hope to keep pace with Big Tech. Since data collection and curation remains a matter of resources, the answer is probably no — at least not until some research breakthrough levels the playing field.

afford All included big data data sets Education Generative AI price tech training
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
Previous ArticleInstagram is testing “test wheels” that aren’t shown to a creator’s followers
Next Article How (Re)vive grew 10x last year helping retailers recycle and sell returned items
bhanuprakash.cg
techtost.com
  • Website

Related Posts

Hint, a new AI startup co-founded by Martha Stewart, offers an AI assistant to homeowners

29 July 2026

Data centers may experience temporary power outages to prevent power outages across the larger US grid

28 July 2026

Are brain waves the next unlock for natural artificial intelligence?

27 July 2026
Add A Comment

Leave A Reply Cancel Reply

Don't Miss

US government bans new foreign-made humanoids, robot dogs and solar inverters, citing national security risks

29 July 2026

Hint, a new AI startup co-founded by Martha Stewart, offers an AI assistant to homeowners

29 July 2026

Google brings age proofing technology to Android developers around the world

29 July 2026
Stay In Touch
  • Facebook
  • YouTube
  • TikTok
  • WhatsApp
  • Twitter
  • Instagram
Fintech

TechCrunch Disrupt 2026’s new Smart Money Stage explores fintech, payments, artificial intelligence and everything

25 July 2026

Don’t want to invest in Elon Musk? Two new ETFs expressly exclude him

10 July 2026

India’s payments chief believes artificial intelligence will play a big part in the next era of digital payments development

28 June 2026
Startups

Antares raises $470 million to build nuclear reactors for the US military

Insurance startup Corgi reportedly raises more money to $4 billion – its third round in 8 weeks

Build publicly, fail publicly: what it’s like to be a founder under 20 right now

© 2026 TechTost. All Rights Reserved
  • About Us
  • Contact Us
  • Privacy Policy
  • Terms and Conditions
  • Disclaimer

Type above and press Enter to search. Press Esc to cancel.