LLM Costs Add Up Fast
At scale, LLM costs become a significant expense. Here's a real example:
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LearnStep 1 of 4
The Cost Problem
Learning Objectives
- •Track and monitor LLM costs
- •Implement cost-aware routing
- •Optimize prompts for efficiency
Lesson Outline
LearnStep 1/4
The Cost Problem
Cost Optimization Strategies
- Tiered Routing: Use cheap models for simple tasks
- Prompt Optimization: Shorter prompts = fewer tokens
- Response Caching: Cache common queries
- Token Budgeting: Set max tokens per request
- Batch Processing: Combine multiple requests
Cost Tracking Pattern
python
When to Use Expensive Models
Use GPT-4 when:
- Query involves money (refunds, billing)
- Query requires complex reasoning
- Customer is high-value (VIP)
- Error cost is high (legal, compliance)