ChatGPT Fine Tuning | A Step-by-Step Guide

Master the process of fine-tuning ChatGPT with this comprehensive step-by-step guide. Unlock the full potential of ChatGPT by customizing it to your specific needs and maximizing its performance.

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OpenAI is really stepping up its game with the "fine-tuning" feature for its GPT-3.5 Turbo model. It's the magic behind the free version of ChatGPT. This new feature lets developers and businesses customize the model to fit their specific needs.

But that's not all! OpenAI plans to bring this fine-tuning goodness to GPT-4, the mighty model behind ChatGPT Plus. They're basically leveling up their game! It's like having a superhero with even cooler powers.

Things will get seriously competitive with all these new features and the growing demand for specialized large language models. It's like a race to the top of Mount Everest, with everyone trying to outdo each other. And you know what happens when there's competition? Yep, you guessed it—innovation! We can expect some mind-blowing advancements in this field.

In this article, we'll dive into the captivating world of fine-tuning and how OpenAI models are making waves.

The Advantages of Fine Tuning ChatGPT Model

Fine-tuning the ChatGPT model offers several advantages that can greatly enhance its performance and customization for specific tasks. The fine-tuning process involves training the base model with a smaller, task-specific dataset, resulting in a fine-tuned model that is better suited for the desired application. Here are some key advantages:

1. Improved Model Performance: Fine-tuning allows the model to learn from a more relevant context, resulting in superior results compared to the base model. By incorporating specific examples and prompts, the fine-tuned version becomes more adept at generating text tailored to the desired use case.

2. Few-Shot Learning: Fine-tuning enables the model to quickly adapt to new tasks or narrow tasks with just a few examples. This capability is particularly useful when dealing with limited labeled data, cutting down on the time-consuming data collection and annotation process.

3. Cost-Effectiveness: Fine-tuning can help reduce costs by maximizing the utilization of pre-trained models. Rather than training a large language model from scratch, fine-tuning allows for more efficient use of computing resources, potentially reducing training time and usage costs.

4. Prompt Engineering: With fine-tuning, engineers can experiment with different prompt formulations to achieve the desired output. By crafting shorter prompts or providing additional instructions, engineers


Understanding Large Language Models

Now, let's talk about the Large Language Model, or LLM. Trained on massive datasets, these NLP models level up their language processing skills. They can handle all sorts of text tasks like translating languages, analyzing sentiments, and even generating content.

We have Turing NLG from Microsoft, ChatGPT from OpenAI, T5 and MT5 from Google, Gopher and Chichilla from Deepmind, and Ernie 3.0 from Baidu. These heavyweights have undergone training with billions of tokens. Impressive, right?

Now, let's talk about the many benefits of these large language models. They can create text that's top-notch, process languages like a boss, and predict language-based outcomes with mind-blowing accuracy. And guess what? They're not done learning. These models can adapt to new data, improving their game over time. They're the powerhouses behind technologies like Conversational AI, Chatbots, Email bots – you name it. They're even rocking the world of personalized SEO, Voice bots, and Natural language coding.

Recommended Read: 11 ChatGPT Use Cases for Business Growth

Can You Fine Tune ChatGPT?

Starting from July 2023, you'll have three options to fine tune and amp up Generative AI platforms like ChatGPT. Let's dive into them:

  1. Prompt-based fine tuning: Using prompts, you provide examples of the outputs you want. You ask questions and give expected responses. The system automatically fine tunes itself to fit your specific needs. Time-saver, isn't it?
  2. Instruction-based fine tuning: When prompt-based fine tuning isn't enough, it's time to level up! We've got instruction-based fine tuning with the incredible Llama2 model and its QLoRa-based fine tuning. This approach is especially handy when you're dealing with exclusive data like medical analysis.
  3. Token-based fine tuning: Sometimes, you need next-level precision and deep understanding of all that domain-specific language. That's where token-based fine tuning saves the day! Just like BloombergGPT did, fine tune the entire token system to achieve remarkable results. It's like training your AI superhero to be unbeatable!


Guide to ChatGPT Fine Tuning

Here is a step-by-step guide to fine tuning ChatGPT:

Preparing Dataset

When you've reached that point where you've optimized your prompt as much as possible, but you're still facing some issues with the model, it's time to consider fine tuning. But before jumping into that, let's talk about preparing your data for training the model.

To do this effectively, you'll want to create a diverse set of demonstration conversations that resemble the conversations your model will encounter in real-world situations. Each conversation in your dataset should follow the same format as our Chat completions API. Each conversation is a list of messages, where each message has a content, role, and an optional name.

To maximize the effectiveness of your training, it's important to include examples that directly target situations where the model performance may not be as desired. The assistant's messages should also serve as ideal responses you want the model to generate.

Creating Prompts

When it comes to fine tuning your model, stick with the instructions and prompts that yield the best results during the initial model training. They're the secret sauce to achieving the best and most reliable outcomes. Even if you've only got a handful of examples, including those instructions in each one will make your model shine.

But here's the deal. If you're thinking of cutting down on costs by trimming those repeated instructions, be aware that the model will still behave as if those instructions were present. Making the model disregarding these "baked-in" instructions during inference can be challenging.

Now, if you choose to go easy on the prompts and instructions, be ready to provide more examples for your model to work. Remember, the incredible model learns by watching, without guidance.

Collecting Samples

When it comes to gathering examples for your project, finding the right number is absolutely crucial. OpenAI recommends training on 50 to 100 examples with GPT 3.5 Turbo to see some awesome improvements. But some of you may succeed using around 20 to 25 examples.

If you see no improvement, it might be time to mix things up a bit. Try a new approach or rework your dataset before doing major data restructuring.

Train and Test Splits

Once you have gathered your dataset, it's time to divide it into two parts - a training dataset and a test set. When you send that fine tuning job with both sets, ChatGPT will keep you posted on the stats throughout the whole training process. These stats will give you a sneak peek into how your model is doing. But create that test set early on, my friend. Once you're done training your model, you can generate some samples specifically for that test set.


Creating A Fine Tuned Model

Once your dataset is ready and uploaded, it's time for the exciting part - creating a fine-tuning job using the OpenAI SDK. Now, this process might take a little while. Your job can be waiting in line behind a few others in the system, and it's hard to predict how long it'll take to train the model. Could be minutes or hours, depending on the model and dataset size. But don't worry; you'll be notified via email as soon as it's done!

You also have some other cool options besides creating the fine-tuning job. You can check out the existing jobs, see how they're doing, or even cancel them if you change your mind.

Using A Fine Tuned Model

When your job is successful, you will find the "fine_tuned_model" field filled with the model name in the job details. You can take this model as a parameter and bring it to life in the Chat completions or legacy Completions API. Then, you can send all your requests to it using the Playground.

The model is ready to rock and roll as soon as your job is done. But, in some cases, it might need a little more time to be fully ready and handle requests. If you request timeout or you can't find the model name, it just means the model is still loading. Give it a few minutes and try again.

Analyzing Your Fine Tuned Model

You'll have the training metrics at your disposal to ensure a smooth and successful training experience: training token accuracy, test token accuracy, training loss, and test loss. These statistics are like a sanity check, keeping you on track with decreasing loss and increasing token accuracy.

And while your fine tuning job is in progress, you can keep tabs on an event object that provides additional helpful metrics. Stay ahead of the game with informative and comprehensive metrics.

When it comes to gauging the quality of a model, you must check out those samples from the new fine tuned model. Indeed, metrics can be useful, but assessing the results is important. You can generate some samples from both the base model and the fine tuned model, and then compare them. Ideally, the test set should cover the entire range of inputs that the model may encounter in a real-world scenario. If the manual evaluation is too time-consuming, the Evals library can automate future evaluations for you.



Fine-tuning is an incredibly powerful technique that empowers you to generate top-notch content effortlessly. In this article, we have provided you with an ultimate guide on effectively customizing the ChatGPT model to meet your unique needs and achieve mind-blowing results.

By setting clear goals, gathering and preparing relevant data, building and testing your fine-tuned model, evaluating its effectiveness, and continuously iterating and improving, you can ensure that your content generation reaches new heights of success.

So, embrace the possibilities of fine-tuning, and unlock the full potential of ChatGPT to create remarkable and engaging text. The journey may require some experimentation, but with patience and determination, the rewards are well worth it.

Frequently Asked Questions

What is the Difference between Fine Tuning and Feature Extraction?

When it comes to reusing existing models for a specific task, we have two approaches: fine tuning and feature extraction. Now, fine tuning is like giving the model a whole new training makeover, while feature extraction takes a more laid-back approach and only trains a new classifier on top of the model's pre-extracted features. In terms of effectiveness, fine tuning takes the crown when the task is all complex and demanding. On the other hand, feature extraction is all about efficiency, especially for those simpler tasks. So, choose your approach wisely.

Is Fine Tuned ChatGPT Cost-effective?

Enhancing ChatGPT through fine-tuning offers several benefits, including like saving money and getting awesome responses with shorter prompts. OpenAI even says people have managed to shrink prompt sizes by a whopping 90% just by directly feeding instructions into the model. That means quicker API calls and big savings!

However, it's important to consider the cost implications. Fine tuning this model will set you back $0.008 for every thousand tokens – that's about four to five times pricier than using GPT-3.5 Turbo 4k for regular stuff. According to OpenAI, if you fine tune with a training file of about 100,000 tokens across 3 epochs, you're looking at around $2.40.

Now, the amount of data and epochs you need for fine-tuning will depend on what you're aiming for and how similar it is to ChatGPT's original training data. That initial cost might seem daunting, but it's a one-time investment that pays off big time when you're using the model over and over again.

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