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Home/Blog/System Design/How ChatGPT System Design works behind the scenes

How ChatGPT System Design works behind the scenes

13 min read
Jan 07, 2025
content
What is ChatGPT?
Key capabilities and use cases
The evolution of ChatGPT
Understanding the requirements of ChatGPT
Functional requirements
Nonfunctional requirements
ChatGPT System Design
The high-level System Design
Diving deep in the detailed System Design of ChatGPT
Understanding the ChatGPT’s NLU component
Understanding the ChatGPT’s NLG component
Building a robust data pipeline for ChatGPT
Challenges in designing ChatGPT
Methods to achieve nonfunctional requirements
Future directions
Conclusion

Imagine conversing with an artificial intelligence (AI) that answers your questions, helps you brainstorm ideas, and even explains complex topics in simple terms. ChatGPT has made this a reality; it has redefined how we interact with technology by understanding context, responding in real time, and managing many users around the globe.

This blog will dive into ChatGPT’s System Design, exploring its requirements, architecture, scalability strategies, and innovative techniques. Along the way, we’ll gain practical insights into distributed systems, real-time processing, and concurrency, now the key areas for System Design interviews.

What is ChatGPT?#

ChatGPT is an artificial intelligence chatbot developed by OpenAIhttps://openai.com. It uses large language models (LLMs) to engage in user conversations and generate human-like responses. Its foundational architecture is the Generative Pre-trained Transformer. It is trained on a large amount of data to generate relevant and meaningful responses.

Key capabilities and use cases#

ChatGPT's capabilities are applicable in various fields, some of which are mentioned below:

  • Customer support: ChatGPT efficiently handles customer queries in a conversational tone. It also allows businesses to address a high volume of requests quickly.

  • Content generation: ChatGPT can generate diverse content, including emails, articles, social media posts, coding assistance and explanation, streamlining workflows, constructing well-structured material, and more.

  • Tutoring and idea generation: ChatGPT can explain text, code, and respond in different languages. It also assists with ideas and brainstorming when writing code, creative content, etc.

ChatGPT isn’t explicitly programmed with grammar rules or vocabulary lists. Instead, it learned language through patterns in its training data, which enables it to understand and generate responses in numerous languages without formal language education.
  • Programming and technical assistance: It can support developers by generating code snippets, debugging issues, and explaining technical concepts, making it an invaluable resource for software development.

The evolution of ChatGPT#

ChatGPT is the result of progressive iterations of OpenAI’s GPT models. Here’s a brief overview of this evolution:

GPT Model

Features

GPT (2018)

The original GPT introduced the transformer architecture and demonstrated the benefits of unsupervised pretraining on large datasets.


GPT-2 (2019)

GPT-2 expanded the model size and dataset, improving text coherence and task performance. OpenAI initially withheld it due to fear of misuse.


GPT-3 (2020)

GPT-3, with 175 billion parameters, marked a significant leap as one of the largest models of its time, excelling in high-quality text generation and zero-shot learning across diverse tasks.


GPT-3.5 (2022)

GPT-3.5, or InstructGPT, is a fine-tuned version of GPT-3 model trained to follow human instructions using evaluator feedback.


GPT-4 (2023)

GPT-4 improved on GPT-3 with better accuracy, reasoning, and user-aligned response, introducing multimodal input to interpret text and images for broader applications.

Note: GPT and GPT-2 laid the foundation for GPT-3, which later became the backbone of ChatGPT.

The evolution of the ChatGPT model
The evolution of the ChatGPT model

These iterations climax in ChatGPT, a fine-tuned, user-oriented AI model that continues to push conversational AI's boundaries.

Understanding the requirements of ChatGPT#

The solution requirements are divided into functional and nonfunctional requirements. This level is typically more detailed, providing the delivery team with essential information about the expectations for the solution being developed.

Requirements of ChatGPT

Functional requirements#

Functional requirements describe what the system should do. These are specific features and capabilities essential for ChatGPT’s functionality:

  • Natural language understanding (NLU): The system must enable AI to comprehend and interpret user input in human language. This includes identifying user intent, extracting important entities, and understanding contextual subtleties.

  • Personalization and context management: The system should adjust interactions based on individual user preferences and previous conversations. ChatGPT can provide personalized recommendations by retaining context and adapting to user preferences across multiple interactions.

  • Authentication and user management: The system should ensure secure user data and system access. This includes user registration, login functionalities, and role-based access controls.

  • Multi-platform access: The system should support seamless deployment and consistent functionality across multiple platforms, such as web apps, mobile apps, and messaging services. This will ensure that users can interact with the AI seamlessly across different devices and environments.

  • Content moderation: The system should implement safeguards against generating harmful or inappropriate content to maintain a safe and respectful environment. This includes using real-time filtering mechanisms to detect and flag any sensitive or prohibited language, allowing immediate intervention. 

  • Response generation: The system should produce coherent and contextually relevant replies. It should support advanced algorithms and language models to generate engaging and informative text.

  • Feedback: The system should enable users to provide feedback on responses, which will help to refine ChatGPT’s accuracy and quality in future interactions. This feedback serves as valuable data for retraining and fine-tuning the model over time, allowing it to learn from past interactions and improve its performance.

1.

What is the role of retrieval-augmented generation (RAG) in enhancing response accuracy in ChatGPT?

Show Answer
Q1 / Q1

Nonfunctional requirements#

Nonfunctional requirements focus on the system’s quality and performance, detailing how it should perform rather than what it should do.

  • Scalability: The system must scale seamlessly based on the number of incoming requests, particularly during peak times, to handle a variety of loads without compromising performance

  • Latency: The system should minimize response time, ensuring low latency to provide a real-time, interactive, conversational experience for users.

  • Security and privacy: Ensuring secure handling of user data is essential. The system must protect sensitive information during user sessions and comply with relevant data protection regulations.

  • Ethical thoughts: The system must adhere to ethical guidelines, ensuring fairness, transparency, and accountability in all interactions.

  • Data integrity: The system must maintain the accuracy and consistency of user data across interactions, ensuring that it is correctly processed, stored, and used in model training or retraining without unauthorized changes

With these requirements in mind, let’s explore how ChatGPT’s architecture is designed to meet them.

ChatGPT System Design#

ChatGPT System Design is carefully crafted to deliver low-latency, scalable, and user-friendly interaction. We will see a breakdown of its major components, each contributing to seamless AI-powered communication.

The high-level System Design#

The high-level design shows how we’ll interconnect the various components of our artificially intelligent chatbot.

The high-level design of ChatGPT
The high-level design of ChatGPT

The workflow for the abstract design is provided below:

  1. The client sends the request through the interface. The request is directed to a load balancer. It distributes the requests across multiple application servers.

  2. The application server checks if a cached result corresponding to the client query is available. If found, the result is directly sent back to the client.

  3. If no cached response is available in the cached memory, the application server routes the request to the NLU component. It processes the input text to identify the general meaning of the message.

  4. NLU component may query a knowledge base or database. The information, along with its findings, will then be sent to the NLG component.

  5. The NLG component generates a response in human-readable language and returns it to the application server. The application server may store this response in the cache for future requests with similar inputs before sending it to the client. It then sends a response back to the client, closing the loop.

  6. Clients can provide feedback. Reinforcement learning usually happens offline. The feedback will be collected periodically to retrain or fine-tune the model.

Reinforcement learning employs a reward model to evaluate response quality and a policy to iteratively optimize the model’s behavior, creating a feedback loop that fine-tunes its alignment with human preferences.

1.

How does ChatGPT handle user queries?

Show Answer
Q1 / Q1

Diving deep in the detailed System Design of ChatGPT#

Now, let’s examine the detailed design of ChatGPT. We will see NLU and NLG components in detail.

The detailed System Design of ChatGPT
The detailed System Design of ChatGPT

Understanding the ChatGPT’s NLU component#

It is the process by which the AI comprehends and interprets human language. It includes:

  • Tokenization: This step breaks the input text into smaller units called tokens.

  • Embedding: Here, tokens are transformed into dense vectors, capturing their semantic meaning. These vectors encode the contextual relationship of words in a high-dimensional space.

  • Contextual understanding: This stage focuses on analyzing the relationships between tokens to grasp and understand the context of a text as a whole.

NLU component involves tokenization, embedding, and contextual understanding
NLU component involves tokenization, embedding, and contextual understanding

Understanding the ChatGPT’s NLG component#

It is the process by which the AI generates human-like text based on the input it has understood. It includes:

  • Decoding: This stage generates the output sequence from the encoded input. It uses masked self-attention to ensure the generation is sequential and contextually coherent.

Note: Self-attention allows the model to focus on relevant parts of the input sequence and capture dependencies effectively.

  • Output layer: At this stage, the processed vectors are transformed into probabilities for each token in the vocabulary. It applies a softmax function to generate a probability distribution over the possible next tokens.

  • Response generation: Finally, the model constructs the complete text output based on the token probabilities. It implements techniques like beam search or greedy decoding to produce coherent and contextually appropriate responses.

NLG component involves decoding, softmax, and response generation
NLG component involves decoding, softmax, and response generation

Building a robust data pipeline for ChatGPT#

While the high-level and detailed designs focus on ChatGPT’s real-time query handling, the Data pipeline forms the foundation for continuous learning and improvement, ensuring the system stays accurate, scalable, and up-to-date. Creating a data pipelineA series of processes that automate the transfer of data from multiple sources to a designated destination for ChatGPT involves several key stages. Here’s an overview of each stage:

  • Data ingestion: In this stage, raw data is collected from the ChatGPT platform, API, databases, and user interactions.

  • Data preprocessing: Once the data is ingested, it needs to be cleaned and prepared for training, which includes data cleaning, tokenization, normalization, and data augmentation.

  • Data storage: Once the data is processed, it must be stored efficiently ( i.e., in databases, data lakes, and cloud storage) for training and future use.

Challenges in designing ChatGPT#

Designing ChatGPT involves overcoming several major challenges to create an accurate, efficient, and user-friendly system.

  • Context understanding: A major challenge in designing ChatGPT is that the system should understand the context of human language and maintain it across the whole conversation within the session.

  • Data quality and quantity: AI models are trained on a vast amount of diverse data, which allows them to train themselves and give accurate, timely responses. Using insufficient or biased data can cause AI to produce poor responses that may reflect unintended biases.

  • Model training: Training LLMs requires significant computational resources and competence. These models need careful calibration to improve accuracy and relevance without inflating costs. Optimizing these models to balance accuracy and efficiency is a complex task.

GPT-3.5 is fine-tuned and transformed into ChatGPT by using a reward model with reinforcement learning
GPT-3.5 is fine-tuned and transformed into ChatGPT by using a reward model with reinforcement learning
  • Performance and scalability: If the system has millions of users working simultaneously, it should be scalable enough to respond to high loads without compromising performance. This means we should design the architecture to manage concurrent requests effectively while minimizing latency to maintain smooth and responsive user interactions.

  • User experience: The system should be trained to engage users conversationally. It should create an experience that feels natural and intuitive. This requires a thoughtful balance between technical design and user interface. Moreover, continuous improvement is needed to improve the model through reinforcement learning.

Each of these challenges is crucial to building ChatGPT and similar conversational AI, which pushes the boundaries of what’s possible in language models and System Design.

Methods to achieve nonfunctional requirements#

Nonfunctional requirements ensure that the system operates efficiently and aligns with ethical standards. These requirements are essential for optimizing the user experience and ensuring system robustness. Below are the key nonfunctional requirements for ChatGPT and the methods to achieve them:

Nonfunctional Requirements

Methods to Achieve Nonfunctional Requirements

Scalability

Auto-scaling, load balancing, microservices

Latency

Model and inference optimization, CDNs, caching, edge computing

Security and Privacy

Data encryption, authentication, access controls, anonymization, compliance with regulations

Ethical Thoughts

Ethical guidance, bias mitigation, transparent AI, accountability measures

Data Integrity

ACID consistency, version control, data validation, audit logs

These methods help ensure that the ChatGPT system meets the expected performance levels, security, fairness, and data accuracy, contributing to an optimal and reliable user experience.

Note: Microsoft’s Azure and Amazon’s AWS are popular cloud providers for deploying scalable applications like ChatGPT. They offer infrastructure flexibility, enabling dynamic scaling and resource management essential for AI workloads.

Future directions#

With the advancements in multimodal AI, ChatGPT will evolve to enable seamless interactions across text, images, videos, and more. This will enhance its effectiveness in healthcare, education, and customer support, enabling data analysis, insights, and content generation.

Ethical AI consideration will remain a priority, focusing on fairness, transparency, and minimizing biases to ensure responsible deployment. These developments will expand ChatGPT’s capabilities, making it more versatile while aligning with ethical standards.

Conclusion#

ChatGPT has evolved from the original GPT model, improving in size and capability to handle diverse queries across industries, including customer support, content creation, tutoring, and programming. Its design ensures efficient, secure interactions with scaling, containerization, and load balancing for optimal performance.

As you explore ChatGPT’s potential, consider the following:

  • How can multimodal features be included for various industries?

  • How can ethical AI shape future applications?

  • What’s next in scaling techniques to meet growing demand?

ChatGPT isn’t just a tool—it’s a step toward the future of AI-driven systems. We’ve only touched upon the fundamental aspects of building a conversational model like ChatGPT. In practice, many other critical areas exist to explore, such as text-to-speech, text-to-image, and text-to-video models. To explore the intricacies of these systems, check out the following course:

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Grokking the Generative AI System Design

This course will prepare you to design generative AI systems with a practical and structured approach. You will begin by exploring the foundational concepts, such as neural networks, transformers, tokenization, embedding, etc. This course introduces a 6-step SCALED framework, a systematic approach to designing robust GenAI systems. Next, through real-world case studies, you will immerse into the design of GenAI systems like text-to-text (e.g., ChatGPT), text-to-image (e.g., Stable Diffusion), text-to-speech (e.g., ElevenLabs), and text-to-video (e.g., SORA). This course describes these systems from a user-focused perspective, emphasizing how user inputs interact with backend processes. Whether you are an ML/software engineer, AI enthusiast, or manager, this course will equip you to design, train, and deploy generative AI models for various use cases. You will gain confidence to approach new challenges in GenAI and leverage advanced techniques to create impactful solutions.

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1 Quiz
114 Illustrations

Frequently Asked Questions

What technology powers ChatGPT?

ChatGPT is an AI-driven program developed by OpenAI that generates conversational responses. It utilizes machine learning algorithms to process and analyze vast datasets, enabling it to respond to user queries effectively.

What is the architecture behind ChatGPT?

How does ChatGPT support multiple platforms like web and mobile?

How is ChatGPT trained?

How does ChatGPT process and understand user inputs?


Written By:
Amna Arshad
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