What when 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 undertaking is an open-source LLM coded in roughly 8,000 strains of PyTorch. It provides you an easy roadmap on the right way to prepare a language mannequin from scratch and make your personal non-public AI in a few hours. On this article, we’ll discuss concerning the newly launched nanochat and the right way to correctly set it up for the coaching step-by-step.
What’s nanochat?
The nanochat repository offers a full-stack pipeline to coach a minimal ChatGPT clone. It takes care of every little thing from tokenization to the top net person interface. This method is a successor to the earlier nanoGPT. It introduces key options equivalent to supervised fine-tuning (SFT), reinforcement studying (RL), and enhanced inference.
Key Options
The undertaking has quite a few vital parts. It incorporates a brand new Rust-built tokenizer for top efficiency. The coaching pipeline employs high quality knowledge equivalent to FineWeb-EDU for pretraining. It additionally employs specialised knowledge equivalent to SmolTalk and GSM8K for post-training fine-tuning. For safety, the mannequin can run code inside a Python sandbox.
The undertaking works properly inside your price range. The elemental “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 short run provides you a easy conversational mannequin. It might probably compose easy poems or describe ideas equivalent to Rayleigh scattering.

A number of 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, equivalent to 40% on MMLU and 70% on ARC-Straightforward.
The first academic goal 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 should prepared your {hardware} and software program. It’s simple to do with the proper instruments.
{Hardware} Necessities
The undertaking is finest dealt with by an 8xH100 GPU node. These can be found on suppliers equivalent to Lambda GPU Cloud for about $24 an hour. You too can use a single GPU with gradient accumulation. This can be a slower methodology, however eight occasions slower.
Software program
You’ll require a regular Python atmosphere together with PyTorch. The undertaking depends upon the uv bundle supervisor to handle dependencies. Additionally, you will require Git put in in an effort to clone the repository. As an elective alternative, it’s possible you’ll embody Weights & Biases for logging your coaching runs.
Preliminary Steps
Cloning the official repository comes first:
git clone [email protected]:karpathy/nanochat.git
Second, grow to be the undertaking listing, i.e, nanochat, and set up the dependencies.
cd nanochat
Lastly, create and fix to your cloud GPU occasion to begin coaching.
Information for Coaching Your Personal ChatGPT Clone
What follows is a step-by-step information to coaching your very first mannequin. Paying shut consideration to those steps will yield a working LLM. The official walkthrough within the repository accommodates extra data.
Step 1: Atmosphere Preparation
First, boot your 8xH100 node. As soon as up, set up uv bundle supervisor utilizing the equipped script. It’s good to have long-running issues inside a display session. This makes the coaching proceed even once you disconnect.
# set up uv (if not already put in)
command -v uv &> /dev/null || curl -LsSf https://astral.sh/uv/set up.sh | sh
# create a .venv native digital atmosphere (if it would not exist)
[ -d ".venv" ] || uv venv
# set up the repo dependencies
uv sync
# activate venv in order that `python` makes use of the undertaking's venv as an alternative of system python
supply .venv/bin/activate
Step 2: Information and Tokenizer Setup
First, we have to set up Rust/Cargo in order that we will compile our customized Rust tokenizer.
# Set up Rust / Cargo
curl --proto '=https' --tlsv1.2 -sSf https://sh.rustup.rs | sh -s -- -y
supply "$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 variety of webpages, and for this half, we’ll 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 prepare 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 should 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 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 3 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 cross, 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 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 equivalent 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, 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 section entails one other spherical of finetuning on conversational knowledge, however with a concentrate on deciding on solely the highest-quality, most well-curated examples. It’s additionally the stage the place safety-oriented changes are made, equivalent 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 help. You may run a method generally known as GRPO on the GSM8K dataset. That is an elective course of and will take one other hour. Test that Karpathy mentioned RL help 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 allows you to discuss to your mannequin utilizing an internet UI or command-line interface. Attempt operating 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. Ensure that to entry it accurately, 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 many others.
Step 7: Evaluate Outcomes
Now, testing it with the net interface on the hyperlink on which the nanochat is hosted.

Lastly, take a look at the report.md within the repository. It has some essential metrics on your mannequin, equivalent 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.

Notice: 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 possibly can additional customise the mannequin. This is likely one of the most important 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 additionally 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. In case you are dealing with VRAM constraints, try and decrease the --device_batch_size
setting.
Personalization Challenges
Others can fine-tune the mannequin on private knowledge. Karpathy advises in opposition to this, as this may find yourself producing “slop.” A greater manner to make use of private knowledge is retrieval-augmented technology (RAG) by way of instruments equivalent to NotebookLM.
Conclusion
The nanochat undertaking permits each researchers and inexperienced persons. It provides an affordable and easy strategy to prepare a robust open-source LLM. With a restricted price range and an open weekend, you possibly can go from setup to deployment. Use this tutorial to coach your personal ChatGPT, try the nanochat repository, and take part locally 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 offers 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 might be educated 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 will likely be a lot slower.
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