Cost Optimization

What are the highest-leverage LLM cost optimizations?

In order of typical impact: (1) prompt caching for reused prefixes — often 10× input token cost reduction; (2) model routing (cheap model for easy, premium for hard) — 3-10× cost reduction with minimal quality impact; (3) prompt compression / summarization of long histories; (4) batch API for asynchronous workloads at ~50% cost. Model choice matters less than these four in most workloads.

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