Almost! There are just a couple more steps before you can start working on real projects with powerful AI models. One of the most important steps is setting up your OpenAI API key inside your JupyterLab environment.
In this guide, we’ll walk through everything you need to know about OpenAI’s plans, pricing, and how to create and secure your API keys for use in your projects.
Understanding OpenAI Plans: Web vs API
Before we dive into setup, it’s important to understand the difference between OpenAI’s web tools and their API services:
- Web Tools (ChatGPT Pro, Gemini, Claude, etc.)
These are the front-end platforms like ChatGPT, Anthropic’s Claude, and Google Gemini. Many offer a Pro plan (around $20/month in the U.S.) that gives you almost unlimited access to their latest models. - API Access
This is entirely separate from the web-based plans. Instead of paying a flat monthly fee, you are billed per API request. This pay-as-you-go model means you only pay for what you use.
Most API requests in small projects cost fractions of a cent, making it very affordable to experiment and build applications.
OpenAI API Pricing & Minimum Balance
While API usage is inexpensive, OpenAI requires a minimum deposit of $5 to activate your account for API use.
- The $5 acts as a credit balance.
- Your requests are billed against that balance.
- For most projects, you will barely spend a few cents a day, especially if you use GPT-4o Mini or smaller models.
👉 In short: that $5 will last you a long time and is well worth the investment if you’re serious about building with AI.
Step 1: Add Credit to Your OpenAI Account
- Sign in to your OpenAI account.
- Click on your profile picture and go to Settings.
- Navigate to the Billing section.
- Click Add to Credit Balance and enter at least $5.
- Make sure auto-recharge is turned off to avoid unexpected charges.
Once your balance is active, you’re ready to generate an API key.
Step 2: Create Your OpenAI API Key
- Go to the Dashboard.
- Navigate to API Keys on the left sidebar.
- Click Create New Secret Key.
- Give your key a name (optional).
- Click Create Secret Key and copy it immediately.
⚠️ Important: This is the only time you’ll see your secret key. Save it securely in a password manager or notes app—you won’t be able to view it again later.
Step 3: Use Your API Key in JupyterLab
Now that you have your key, you can add it to your JupyterLab environment. This allows you to connect directly to OpenAI’s models and start running your projects.
import os
os.environ["OPENAI_API_KEY"] = "your-secret-key-here"
Once set, you can call the OpenAI API and begin building applications powered by GPT-4, GPT-4o Mini, or other models.
Final Thoughts
Setting up your OpenAI API key may require a small upfront investment of $5, but the value it unlocks is enormous. With just a few cents per request, you’ll have access to some of the most powerful AI models available today.
If you’d rather not pay, you can use open-source models like LLaMA, but for cutting-edge performance and scalability, the OpenAI API is absolutely worth it.
Now that your API key is ready, you’re just about done with environment setup—and ready to dive into real AI projects. 🚀