What should you may construct a useful ChatGPT-like AI for $100? Andrej Karpathy’s new nanochat tells you precisely that! Launched on October 13, 2025, Karpathy’s nanochat undertaking is an open-source LLM coded in roughly 8,000 traces of PyTorch. It offers you an easy roadmap on how one can practice a language mannequin from scratch and make your individual non-public AI in a few hours. On this article, we are going to speak in regards to the newly launched nanochat and how one can correctly set it up for the coaching step-by-step.
What’s nanochat?
The nanochat repository supplies a full-stack pipeline to coach a minimal ChatGPT clone. It takes care of all the pieces from tokenization to the top internet person interface. This technique is a successor to the earlier nanoGPT. It introduces key options corresponding to supervised fine-tuning (SFT), reinforcement studying (RL), and enhanced inference.
Key Options
The undertaking has a variety of important elements. It incorporates a brand new Rust-built tokenizer for prime efficiency. The coaching pipeline employs high quality knowledge corresponding to FineWeb-EDU for pretraining. It additionally employs specialised knowledge corresponding to SmolTalk and GSM8K for post-training fine-tuning. For safety, the mannequin can run code inside a Python sandbox.
The undertaking works effectively inside your price range. The elemental “speedrun” mannequin is round $100 and trains for 4 hours. You can too develop a extra strong mannequin for about $1,000 with roughly 42 hours of coaching.
Efficiency
The efficiency will increase with the coaching time.
- 4 hours: The short run offers you a easy conversational mannequin. It will possibly compose easy poems or describe ideas corresponding to Rayleigh scattering.
Among the abstract metrics have been produced by the $100 speedrun for 4 hours.

- 12 hours: The mannequin begins to surpass GPT-2 on the CORE benchmark.
- 24 hours: It will get respectable scores, corresponding to 40% on MMLU and 70% on ARC-Straightforward.
The first academic purpose of the nanochat undertaking is to offer a straightforward, hackable baseline. This makes it an excellent useful resource for college students, researchers, and AI hobbyists.
Stipulations and Setup
Earlier than you begin, you have to prepared your {hardware} and software program. It’s simple to do with the right instruments.
{Hardware} Necessities
The undertaking is greatest dealt with by an 8xH100 GPU node. These can be found on suppliers corresponding to Lambda GPU Cloud for about $24 an hour. You can too use a single GPU with gradient accumulation. It is a slower methodology, however eight instances slower.
Software program
You’ll require a typical Python setting together with PyTorch. The undertaking depends upon the uv bundle supervisor to handle dependencies. Additionally, you will require Git put in to be able to clone the repository. As an non-obligatory selection, it’s possible you’ll embrace Weights & Biases for logging your coaching runs.
Preliminary Steps
Cloning the official repository comes first:
git clone [email protected]:karpathy/nanochat.git
Second, turn into the undertaking listing, i.e, nanochat, and set up the dependencies.
cd nanochat
Lastly, create and connect to your cloud GPU occasion to begin coaching.
Information for Coaching Your Personal ChatGPT Clone
What follows is a step-by-step information to coaching your very first mannequin. Paying shut consideration to those steps will yield a working LLM. The official walkthrough within the repository incorporates extra data.
Step 1: Setting Preparation
First, boot your 8xH100 node. As soon as up, set up uv bundle supervisor utilizing the provided script. It’s sensible to have long-running issues inside a display session. This makes the coaching proceed even whenever you disconnect.
# set up uv (if not already put in)
command -v uv &> /dev/null || curl -LsSf https://astral.sh/uv/set up.sh | sh
# create a .venv native digital setting (if it would not exist)
[ -d ".venv" ] || uv venv
# set up the repo dependencies
uv sync
# activate venv in order that `python` makes use of the undertaking's venv as an alternative of system python
supply .venv/bin/activate
Step 2: Information and Tokenizer Setup
First, we have to set up Rust/Cargo in order that we will compile our customized Rust tokenizer.
# Set up Rust / Cargo
curl --proto '=https' --tlsv1.2 -sSf https://sh.rustup.rs | sh -s -- -y
supply "$HOME/.cargo/env"
# Construct the rustbpe Tokenizer
uv run maturin develop --release --manifest-path rustbpe/Cargo.toml
The pretraining knowledge is simply the textual content of a whole lot of webpages, and for this half, we are going to use the FineWeb-EDU dataset. However Karpathy recommends utilizing the next model.
https://huggingface.co/datasets/karpathy/fineweb-edu-100b-shuffle
python -m nanochat.dataset -n 240
As soon as downloaded, you practice the Rust tokenizer on a big corpus of textual content. This step is made to be quick by the script. It ought to compress to roughly a 4.8 to 1 compression ratio.
python -m scripts.tok_train --max_chars=2000000000
python -m scripts.tok_eval
Step 3: Pretraining
Now, you have to obtain the analysis knowledge bundle. That is the place the check datasets for the mannequin’s efficiency reside.
curl -L -o eval_bundle.zip https://karpathy-public.s3.us-west-2.amazonaws.com/eval_bundle.zip
unzip -q eval_bundle.zip
rm eval_bundle.zip
mv eval_bundle "$HOME/.cache/nanochat"
Additionally, setup wandb for seeing good plots throughout coaching. uv already put in wandb for us up above, however you continue to should arrange an account and log in with:
wandb login
Now it’s possible you’ll provoke the primary pretraining script. Execute it with the torchrun command to leverage all eight GPUs. The method trains the mannequin on easy language patterns from the FineWeb-EDU corpus. This stage requires round two to 3 hours for speedrun. It is a very important a part of the method for coaching a language mannequin.
torchrun --standalone --nproc_per_node=8 -m scripts.base_train -- --depth=20
We’re initiating coaching on 8 GPUs utilizing the scripts/base_train.py script. The mannequin is a 20-layer Transformer. Every GPU handles 32 sequences of 2048 tokens per ahead and backward move, giving a complete of 32 × 2048 = 524,288 (≈0.5M) tokens processed per optimization step.
If Weights & Biases (wandb) is configured, you’ll be able to add the –run=speedrun flag to assign a run title and allow logging.
When coaching begins, you’ll see an output just like the next (simplified right here for readability):
Step 4: Midtraining and SFT
As soon as pretraining, you proceed to midtraining. Midtraining applies the SmolTalk dataset to offer the mannequin with extra conversational energy. After that, you’ll conduct supervised fine-tuning (SFT) on knowledge corresponding to GSM8K. That is what aids the mannequin in studying to execute directions in addition to fixing issues.
We are able to begin the mid-training as follows: this run solely takes about 8 minutes, so much shorter than pre-training at ~3 hours.
torchrun --standalone --nproc_per_node=8 -m scripts.mid_train
After mid-training comes the Finetuning stage. This part includes one other spherical of finetuning on conversational knowledge, however with a concentrate on choosing solely the highest-quality, most well-curated examples. It’s additionally the stage the place safety-oriented changes are made, corresponding to coaching the mannequin on applicable refusal behaviors for delicate or restricted queries. This once more solely runs for about 7 minutes.
torchrun --standalone --nproc_per_node=8 -m scripts.chat_sft
Step 5: Non-compulsory RL
The nanochat open-source LLM additionally has preliminary reinforcement studying assist. You may run a method generally known as GRPO on the GSM8K dataset. That is an non-obligatory course of and should take one other hour. Test that Karpathy mentioned RL assist remains to be in its infancy.
torchrun --standalone --nproc_per_node=8 -m scripts.chat_rl
Step 6: Inference and UI
With coaching completed, now you can run the inference script. This lets you speak to your mannequin utilizing an internet UI or command-line interface. Attempt working it with some examples like “Why is the sky blue?” to expertise your creation.
python -m scripts.chat_cli (for Command line window)
OR
python -m scripts.chat_web. (for Net UI)
The chat_web script will serve the Engine utilizing FastAPI. Be sure to entry it appropriately, e.g., on Lambda, use the general public IP of the node you’re on, adopted by the port, so for instance http://209.20.xxx.xxx:8000/, and so forth.
Step 7: Assessment Outcomes
Now, testing it with the online interface on the hyperlink on which the nanochat is hosted.

Lastly, have a look at the report.md within the repository. It has some vital metrics in your mannequin, corresponding to its CORE rating and GSM8K accuracy. The bottom speedrun runs for about $92.40 to place in a bit lower than 4 hours of labor.

Word: I’ve taken the code and steps from Andrej Karapathy’s nano chat GitHub. You could find full documentation right here. What I showcased above is a less complicated and shorter model.
Customizing and Scaling
The speedrun is a superb start line. From that time, you’ll be able to additional customise the mannequin. This is among the most vital benefits of Karpathy’s nanochat launch.
Tuning Choices
You may tweak the depth of the mannequin to enhance efficiency. With the --depth=26 flag, say, you step right into a extra highly effective $300 vary. You may also strive utilizing different datasets or altering coaching hyperparameters.
Scaling Up
The repository particulars a $1,000 stage. This entails an prolonged coaching run of roughly 41.6 hours. It yields a mannequin with improved coherence and better benchmark scores. If you’re going through VRAM constraints, try to decrease the --device_batch_size setting.
Personalization Challenges
Others can fine-tune the mannequin on private knowledge. Karpathy advises towards this, as this may find yourself producing “slop.” A greater method to make use of private knowledge is retrieval-augmented technology (RAG) through instruments corresponding to NotebookLM.
Conclusion
The nanochat undertaking allows each researchers and inexperienced persons. It presents an inexpensive and easy method to practice a powerful open-source LLM. With a restricted price range and an open weekend, you’ll be able to go from setup to deployment. Use this tutorial to coach your individual ChatGPT, take a look at the nanochat repository, and take part in the neighborhood discussion board to assist out. Your journey to coach a language mannequin begins right here.
Regularly Requested Questions
A. Nanochat is an open-source PyTorch initiative by Andrej Karpathy. It supplies an end-to-end pipeline to coach a ChatGPT-style LLM from scratch cheaply.
A. It prices about $100 to coach a primary mannequin and takes 4 hours. Extra highly effective fashions could be skilled with budgets of $300 to $1,000 with prolonged coaching durations.
A. The instructed configuration is an 8xH100 GPU node, and you’ll lease this from cloud suppliers. It’s attainable to make use of a single GPU, however it is going to be a lot slower.
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