Llm Gateway Cost And Caching medium
A document summarization feature averages 1,500 input tokens and 1,000 output tokens per request, and output tokens cost about 5x input tokens. You must cut its cost by roughly 40% without changing models. Which change gets you there?
- A Halve the input prompt with a retrieval filter, since input tokens make up the majority of tokens in each request.
- B Cap outputs at around 400 tokens with a length instruction, since output is priced about 5x input and dominates.
- C Add a semantic cache, since summaries of documents on similar topics will match often enough to cover the saving.
- D Enable prompt caching on the whole request, since cached reads cost about one tenth and also discount output tokens.
Answer: B. Cap outputs at around 400 tokens with a length instruction, since output is priced about 5x input and dominates.
Weighted cost is 1,500 + 5 x 1,000 = 6,500 units, so output is about 77% of spend; cutting output to 400 tokens drops it to 3,500 units, a about 46% saving, while halving input (A) saves only ~12%. The tradeoff is less detailed summaries for a much smaller bill. Semantic caching (C) gets near-zero hits on unique documents, and prompt caching never discounts output tokens.
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