What in the event you might construct a purposeful ChatGPT-like AI for $100? Andrej Karpathy’s new nanochat tells you precisely that! Launched on October 13, 2025, Karpathy’s nanochat challenge is an open-source LLM coded in roughly 8,000 strains of PyTorch. It provides you an easy roadmap on the best way to 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 concerning the newly launched nanochat and the best way to correctly set it up for the coaching step-by-step.
What’s nanochat?
The nanochat repository gives a full-stack pipeline to coach a minimal ChatGPT clone. It takes care of every little thing from tokenization to the tip net person interface. This method is a successor to the earlier nanoGPT. It introduces key options similar to supervised fine-tuning (SFT), reinforcement studying (RL), and enhanced inference.
Key Options
The challenge has quite a few important parts. It incorporates a brand new Rust-built tokenizer for top efficiency. The coaching pipeline employs high quality information similar to FineWeb-EDU for pretraining. It additionally employs specialised information similar to SmolTalk and GSM8K for post-training fine-tuning. For safety, the mannequin can run code inside a Python sandbox.
The challenge works effectively inside your finances. The basic “speedrun” mannequin is round $100 and trains for 4 hours. You too can 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 fast run provides you a easy conversational mannequin. It may compose easy poems or describe ideas similar to Rayleigh scattering.

Among the abstract metrics had 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 first rate scores, similar to 40% on MMLU and 70% on ARC-Straightforward.
The first instructional goal of the nanochat challenge is to offer a straightforward, hackable baseline. This makes it an incredible useful resource for college kids, researchers, and AI hobbyists.
Stipulations and Setup
Earlier than you begin, it’s essential to prepared your {hardware} and software program. It’s simple to do with the right instruments.
{Hardware} Necessities
The challenge is finest dealt with by an 8xH100 GPU node. These can be found on suppliers similar to Lambda GPU Cloud for about $24 an hour. You too can use a single GPU with gradient accumulation. This can be a slower methodology, however eight instances slower.
Software program
You’ll require an ordinary Python atmosphere together with PyTorch. The challenge depends upon the uv package deal supervisor to handle dependencies. Additionally, you will require Git put in in an effort to clone the repository. As an non-compulsory alternative, you could embody Weights & Biases for logging your coaching runs.
Preliminary Steps
Cloning the official repository comes first:
git clone [email protected]:karpathy/nanochat.git
Second, turn into the challenge listing, i.e, nanochat, and set up the dependencies.
cd nanochat
Lastly, create and connect to your cloud GPU occasion to start out coaching.
Information for Coaching Your Personal ChatGPT Clone
What follows is a step-by-step information to coaching your very first mannequin. Paying shut consideration to those steps will yield a working LLM. The official walkthrough within the repository accommodates extra data.
Step 1: Surroundings Preparation
First, boot your 8xH100 node. As soon as up, set up uv package deal supervisor utilizing the provided script. It’s sensible to have long-running issues inside a display session. This makes the coaching proceed even if you disconnect.
# set up uv (if not already put in)
command -v uv &> /dev/null || curl -LsSf https://astral.sh/uv/set up.sh | sh
# create a .venv native digital atmosphere (if it would not exist)
[ -d ".venv" ] || uv venv
# set up the repo dependencies
uv sync
# activate venv in order that `python` makes use of the challenge's venv as a substitute of system python
supply .venv/bin/activate
Step 2: Information and Tokenizer Setup
First, we have to set up Rust/Cargo in order that we will compile our customized Rust tokenizer.
# Set up Rust / Cargo
curl --proto '=https' --tlsv1.2 -sSf https://sh.rustup.rs | sh -s -- -y
supply "$HOME/.cargo/env"
# Construct the rustbpe Tokenizer
uv run maturin develop --release --manifest-path rustbpe/Cargo.toml
The pretraining information is simply the textual content of lots 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, it’s essential to obtain the analysis information bundle. That is the place the take a look at 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 must arrange an account and log in with:
wandb login
Now you could provoke the principle 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 a few hours for speedrun. This can be 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 possibly can add the –run=speedrun flag to assign a run title and allow logging.
When coaching begins, you’ll see an output much 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 information similar to GSM8K. That is what aids the mannequin in studying to execute directions in addition to fixing issues.
We will begin the mid-training as follows: this run solely takes about 8 minutes, rather a lot 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 section entails one other spherical of finetuning on conversational information, however with a give attention to choosing solely the highest-quality, most well-curated examples. It’s additionally the stage the place safety-oriented changes are made, similar to coaching the mannequin on acceptable 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 help. You possibly can run a way often known as GRPO on the GSM8K dataset. That is an non-compulsory course of and will take one other hour. Examine that Karpathy mentioned RL help continues 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 allows you to 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 certain that 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: Overview 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 to your mannequin, similar 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.

Be aware: I’ve taken the code and steps from Andrej Karapathy’s nano chat GitHub. You’ll find full documentation right here. What I showcased above is an easier and shorter model.
Customizing and Scaling
The speedrun is a superb place to begin. From that time, you possibly can additional customise the mannequin. This is among the most vital benefits of Karpathy’s nanochat launch.
Tuning Choices
You possibly can 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 additionally strive utilizing different datasets or altering coaching hyperparameters.
Scaling Up
The repository particulars a $1,000 degree. 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 dealing with VRAM constraints, try and decrease the --device_batch_size
setting.
Personalization Challenges
Others can fine-tune the mannequin on private information. Karpathy advises towards this, as this may find yourself producing “slop.” A greater method to make use of private information is retrieval-augmented era (RAG) through instruments similar to NotebookLM.
Conclusion
The nanochat challenge allows each researchers and newbies. It presents an inexpensive and easy approach to practice a robust open-source LLM. With a restricted finances and an open weekend, you possibly can go from setup to deployment. Use this tutorial to coach your individual ChatGPT, try the nanochat repository, and take part in the neighborhood discussion board to assist out. Your journey to coach a language mannequin begins right here.
Ceaselessly Requested Questions
A. Nanochat is an open-source PyTorch initiative by Andrej Karpathy. It gives 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 educated with budgets of $300 to $1,000 with prolonged coaching durations.
A. The advised configuration is an 8xH100 GPU node, and you’ll lease this from cloud suppliers. It’s potential to make use of a single GPU, however it will likely be a lot slower.
Login to proceed studying and revel in expert-curated content material.