OpenAI’s GPT-3 vs. Open Source Alternatives (GPT-Neo and GPT-J) (2024)

If you have only a few minutes to spare, here’s what you should know.

  • OpenAI has four GPT-3 model versions: Ada, Babbage, Curie, and Davinci. Ada is the smallest and cheapest to use model but performs worst, while Davinci is the largest, most expensive, and best performing of the set.

  • GPT-3 Davinci is the best performing model on the market today. It has been trained on more data and with more parameters than its open source alternatives, GPT-Neo and GPT-J.

  • GPT-J generally performs better than the smaller versions of OpenAI’s GPT-3 models, Ada and Babbage, but not quite as well as Davinci.

  • GPT-Neo and GPT-J are open source and free to use, and both are good alternatives to OpenAI’s GPT-3 for users for whom cost is a constraint.

  • GPT has broad applications in industries such as entertainment, advertising, information technology, software development, and more. The availability of open source GPT-3 alternatives makes this tech more accessible and affordable for users, which is a welcome development.

  • GPT-3 is remarkable but fails spectacularly at times and has a long way to go before it can handle tasks such as open-ended chat.

OpenAI’s GPT-3 vs. Open Source Alternatives (GPT-Neo and GPT-J) (1)

This post is sponsored by Multimodal, a NYC-based development shop that focuses on building custom natural language processing solutions for product teams using large language models (LLMs).

With Multimodal, you will reduce your time-to-market for introducing NLP in your product. Projects take as little as 3 months from start to finish and cost less than 50% of newly formed NLP teams, without any of the hassle. Contact them to learn more.

Ankur’s Newsletter is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber.

“A robot wrote this entire article. Are you scared yet, human?”

This was the title of a Guardian op-ed published in September 2020. And as it suggests, the author was a robot — a natural language processing model developed by OpenAI. This "micro robot" is known as GPT-3. Released on June 11, 2020, GPT-3 has become the world’s most talked-about language generator.

Although GPT-3 was one of the only models of its kind when it debuted in 2020, today there are several alternatives such as GPT-Neo and GPT-J. How do these alternatives compare to GPT-3? Are they better or worse or just different?

Let’s explore each of these questions.

GPT-3 — The Basics

The abbreviation GPT stands for generative pre-training. Since 2018, OpenAI has used this deep learning method to train language models. This method involves training a model on large amounts of data in order to improve its ability to predict the next most probable word in a sentence.

Using this and a brain-like neural network called Transformer, OpenAI first released GPT in 2018, followed by GPT-2 in 2019 and GPT-3 in 2020. Each successor was trained on more data and with more parameters and was better fine-tuned than the last.

GPT-3 has been trained with 175 billion parameters — a number ten times greater than what its predecessor, GPT 2, was trained with. GPT-3’s text generations are quite stunning. It can translate from language to another, recognize named entities within text, summarize articles, and compose full-length pieces.

OpenAI’s GPT-3 vs. Open Source Alternatives (GPT-Neo and GPT-J) (2)

GPT-3 currently comes in four versions. Ada is the smallest and cheapest, while Davinci is the largest and most expensive. Below are the details of each model along with pricing.

OpenAI’s GPT-3 vs. Open Source Alternatives (GPT-Neo and GPT-J) (3)

Users can input simple text commands into GPT-3, and the model produces mostly coherent results. GPT-3 can be pretty creative, too, writing everything from fiction to poetry in the style of Shakespeare, Robert Frost, Burns, or any other renowned poet.

Such capabilities come at a huge price — literally. GPT-3 is not open-source. It is available via OpenAI’s API, but the API is extremely expensive. Although high costs have limited GPT-3’s mainstream adoption, researchers and professionals actively build prototypes and commercial applications using it today.

In the last few years, several startups have developed their own alternatives to GPT-3. Developing a system like GPT-3 requires a massive upfront investment. Despite such obstacles, companies like EleutherAI have developed and released open source language models to compete with GPT-3.

Many of these models are not as powerful as the largest versions of GPT-3 (such as Curie and Davinci), but they perform just as well as the simpler GPT-3 models (such as Ada and Babbage).

Here’s a summary of the popular open-source alternatives to GPT-3.

OpenAI’s GPT-3 vs. Open Source Alternatives (GPT-Neo and GPT-J) (4)

1. GPT-Neo

GPT-Neo is an open-source alternative to GPT-3 and is publicly available. The model was developed by EleutherAI, a decentralized group of AI researchers and scientists founded in 2020. EleutherAI’s mission is to make AI more accessible by developing and releasing open source models.

Since EleutherAI did not have access to a dataset as extensive and diverse as that of OpenAI, it sourced its own 825 gigabyte dataset called "The Pile." This dataset comprises data from academic sources like Pubmed, common websites like Wikipedia and Github, and even subtitles from films and TV shows. Since it did not have private computing resources to develop its models, EleutherAI used cloud computing resources from Google's TensorFlow Research cloud and CoreWeave cloud.

2. GPT-J

EleutherAI also developed and released a second, larger version of the model called GPT-J, which has more parameters and performs better on NLP tasks than its smaller, earlier predecessor, GPT-Neo. GPT-J was trained on 6 billion parameters and can perform tasks such as story writing, informational retrieval, translation, and code generation.

EleutherAI also developed a simple user interface for GPT-J. This interface allows users to increase the level of creativity of the model by using a parameter known as “temperature.” Moreover, the interface has built-in prompts for users to demo the model’s capabilities.

EleutherAI used a JAX-based (a Python library frequently used for machine learning projects) Transformer to develop GPT-J. The model was trained on the same dataset as GPT-Neo.

While GPT-Neo and GPT-J are the best known alternatives to OpenAI’s GPT-3, other companies are developing their own GPT-3 variants. Some of these variants may overtake GPT-Neo and GPT-J in popularity. For example, Cohere, a Canada-based AI lab, has begun to release a series of language models. Another company called AI21 labs released Jurassic-1, a model trained on 178 billion parameters. This model rivals the size of OpenAI’s largest GPT-3 version, Davinci.

While these others are worth monitoring, GPT-J and GPT-Neo are the most popular open source alternatives to GPT-3 today.

GPT-Neo Vs. GPT-3

Georgian, a fintech company, recently compared the performance of GPT-Neo against GPT-3.Here’s the key takeaway: GPT-Neo is better than OpenAI’s smallest model, Ada, but not quite as good as OpenAI’s largest model, Davinci. That being said, GPT-Neo is free, while GPT-3 Davinci is very expensive.

OpenAI’s GPT-3 vs. Open Source Alternatives (GPT-Neo and GPT-J) (5)

GPT-Neo vs. GPT-3 on Title Generation Task

The Georgian team asked GPT-Neo and GPT-3 to generate blog post titles given the following prompt: The post describes the process for taking thoughtful meeting notes. The author covers how he trained himself to remember what is happening during long meetings and suggests actionable steps to integrate the note-taking habit in your life.

Here are the results.

OpenAI’s GPT-3 vs. Open Source Alternatives (GPT-Neo and GPT-J) (6)

GPT-Neo performs better than GPT-3 Ada but not quite as well as GPT-3 Davinci. For example, GPT-Neo generated titles such as "Taking Notes During Meetings," whereas GPT-3 Davinci generated titles such as “How to take notes from meetings like a boss.”

GPT-Neo vs. GPT-3 on Sentiment Classification Task

The results on sentiment classification were similar: GPT-Neo outperformed GPT-3 Ada but could not match the performance of GPT-3 Davinci. Check out more detailed results here.

Price Comparison

GPT-Neo is open-source and free. GPT-3 Davinci, on the other hand, is expensive. For the absolute best performance, OpenAI still wins, but users with limited budgets or large machine learning jobs should consider GPT-Neo as an alternative.

Several developers have conducted tests between GPT-J and GPT-3. These tests involved both zero-shot tasks (tasks where no labeled examples are provided to the model) and multiple shot tasks. Here are the key findings:

  • In zero shot settings, there is not a noticeable difference between the performance of GPT-J and GPT-3.

  • GPT-J’s hardware performance is on par with GPT-3 Babbage.

  • GPT-J handles chatbot conversations better than GPT-3.

  • GPT-J is superior to GPT-3 at Python code generation.

  • GPT-J is free, a major selling point.

OpenAI’s GPT-3 vs. Open Source Alternatives (GPT-Neo and GPT-J) (7)

GPT-J Works Similarly to GPT-3 in Zero-Shot Settings

When it comes to zero-shot tasks, GPT-J performed very closely to GPT-3. Aran Komatsuzaki, the individual who performed the tests above, also noticed the GPT-J was far more efficient in hardware performance than GPT-Neo. GPT-J had hardware performance similar to GPT-3 Babbage.

GPT-J Has Better Chatbot Abilities than GPT-3

According to Max Woolf, GPT-J is better at code generation than GPT-3. Note that these tests were from the middle of 2021, and GPT-3 Davinci was not available then. GPT-3 Davinci may now rival or exceed the performance of GPT-J.

GPT-J is Better in Python Code Generation

Woolf also saw similar results for Python code-generation.

Price Comparison

Just like the GPT-Neo, GPT-J is also free.

Why Do We Need GPT-3 Alternatives?

The primary benefit of having GPT-3 alternatives is affordability. Free-to-use open source language generators make natural language processing accessible to more researchers, companies, and other organizations. Also, competition is healthy for the market. Having alternatives to OpenAI’s GPT-3 will increase the pace of improvement.

Developers of language models such as the GPT-Neo and GPT-J have done a great job making the technology affordable and widely accessible. Let us know what you think about these open source alternatives in the comments below.

Subscribe to get full access to the newsletter and website. Never miss an update on major trends in AI and startups.

Here is a bit more about my experience in this space and the two books I’ve written on unsupervised learning and natural language processing.

You can also follow me on Twitter.

OpenAI’s GPT-3 vs. Open Source Alternatives (GPT-Neo and GPT-J) (2024)

FAQs

OpenAI’s GPT-3 vs. Open Source Alternatives (GPT-Neo and GPT-J)? ›

GPT-J generally performs better than the smaller versions of OpenAI's GPT-3 models, Ada and Babbage, but not quite as well as Davinci. GPT-Neo and GPT-J are open source and free to use, and both are good alternatives to OpenAI's GPT-3 for users for whom cost is a constraint.

Is GPT-neo better than GPT-J? ›

Overview. GPT-J is a model released by EleutherAI shortly after its release of GPTNeo, with the aim of delveoping an open source model with capabilities similar to OpenAI's GPT-3 model. With a larger size than GPTNeo, GPT-J also performs better on various benchmarks.

Is GPT-J as good as GPT-3? ›

GPT-J is an open-source, open-access large language model that came out of experiments at EleutherAI to train massive models on the scale of OpenAI's GPT-3. With 6 billion parameters, GPT-J isn't the biggest but is above average and bigger than their older GPT-Neo models.

Is there an open-source version of GPT-3? ›

Unfortunately, there isn't an open-source version of GPT-3 available from OpenAI. While OpenAI occasionally releases open-source projects related to language models, like Jukebox and Whisper, the core GPT-3 model itself remains closed-source and commercially licensed.

Is there anything better than GPT-3? ›

As a standout among GPT3 alternatives, Google BARD emerges as a powerful large language model developed to meet the increasing demands of natural language processing and generation. Its capabilities in handling a wide array of natural language tasks make it a top choice for those seeking alternatives to GPT3.

What is the difference between GPT-3 and GPT-Neo? ›

GPT-Neo performs better than GPT-3 Ada but not quite as well as GPT-3 Davinci. For example, GPT-Neo generated titles such as "Taking Notes During Meetings," whereas GPT-3 Davinci generated titles such as “How to take notes from meetings like a boss.”

Is GPT-J better than ChatGPT? ›

It depends what you use it for. If it's to classify text and you can fine tune it, it's probably good enough. For following instructions, ChatGPT is a lot better but GPT J did relatively well if given enough examples on simple tasks. For a chatbot, it's not really useable.

What are the limitations of GPT-J? ›

Limitations. One limitation of GPT-J is its large size, which can make it difficult to run on some systems. Additionally, like other language models, GPT-J may generate biased or inappropriate content if not properly trained and monitored.

How good is GPT-J? ›

For many companies, choosing a more efficient, highly performant smaller model, like GPT-J, is the right choice. GPT-J is an open-source alternative to OpenAI's GPT-3 from EleutherAI. It's a 6B parameter version of GPT-3 that anyone can download and which performs just as well as larger models on many language tasks.

What is GPT-3 disadvantages? ›

Disadvantages of GPT-3

Bias and Ethical Concerns: GPT-3, like other AI models, is trained on vast amounts of data from the internet, which can contain biases and inaccuracies. Consequently, GPT-3 may generate content reflecting these biases, raising ethical concerns (8).

Is GPT-J free to use? ›

GPT-Neo and GPT-J (EleutherAI)

Although GPT-Neo and GPT-J are both open source and free to use, they do, like all LLM's, have minimum hardware requirements. To run an LLM trained on billions of parameters, such as GPT-J, you need at least 25GB of RAM, multiple CPUs, and around 25GB of VRAM.

How much does it cost to run GPT-J? ›

Total cost for GPT-3.5: $300 + $6,000 = $6,300 per month. Fine-tuning GPT-J: $0.0004 x 10M / 1K = $4. Accessing GPT-J: $0.0016 x 100M / 1K = $160. Total cost for GPT-J: $4 + $160 = $164 per month.

Which AI is better than GPT? ›

While ChatGPT remains a popular choice for many, a plethora of alternatives have emerged, catering to a wide range of needs and preferences. Among these, Google Bard, Copilot, Perplexity AI, and many others stand out, each bringing unique features and capabilities to the table.

Which AI is better than ChatGPT? ›

The best AI chatbots
  • The original: ChatGPT.
  • Longest conversation memory: Claude.
  • Online search, text, and image generation: Microsoft Bing AI.
  • Integration with Google apps: Google Bard.
  • For building your own chatbot: Zapier Chatbots.
  • Open license: Meta Llama 2.
  • For personal use: Pi.
  • Multiple AI models: Poe.

Is it worth paying for ChatGPT 4? ›

The free tier of ChatGPT is good, but GPT-4, at $20 per month via ChatGPT Plus, can be a good deal smarter and more accurate.

Is Google Bard better than ChatGPT? ›

While you can use Bard and ChatGPT interchangeably for most situations, Bard is better at answering user queries and giving more definitive responses. ChatGPT, however, does a better job of generating long-form content and provides more detailed and complex responses to user prompts.

Is GPT-neo better than GPT-2? ›

Yes, GPT-Neo is better than GPT-2.

What is GPT-Neo used for? ›

The GPT-Neo Model transformer with a span classification head on top for extractive question-answering tasks like SQuAD (a linear layer on top of the hidden-states output to compute span start logits and span end logits ). This model inherits from PreTrainedModel.

Is GPT-J better than GPT-2? ›

GPT-J is a newer and larger model than GPT-2. It has 6 billion parameters, while GPT-2 has 1.5 billion parameters¹. GPT-J also uses Rotary Position Embedding (RoPE) to encode the position of each token, while GPT-2 uses sinusoidal position embedding².

What is the most advanced AI GPT? ›

Of course, AI has long been a fast-moving field, but these past few years have led the industry through lightning-fast developments. In November 2022, ChatGPT was launched, and just four months later, OpenAI introduced a new and significantly enhanced large language model (LLM) named GPT-4.

Top Articles
Latest Posts
Article information

Author: Aron Pacocha

Last Updated:

Views: 6328

Rating: 4.8 / 5 (68 voted)

Reviews: 83% of readers found this page helpful

Author information

Name: Aron Pacocha

Birthday: 1999-08-12

Address: 3808 Moen Corner, Gorczanyport, FL 67364-2074

Phone: +393457723392

Job: Retail Consultant

Hobby: Jewelry making, Cooking, Gaming, Reading, Juggling, Cabaret, Origami

Introduction: My name is Aron Pacocha, I am a happy, tasty, innocent, proud, talented, courageous, magnificent person who loves writing and wants to share my knowledge and understanding with you.