LLM Cost Optimization: Caching, Routing, and Compression Strategies

Introduction: LLM costs can spiral quickly in production systems. A single GPT-4 call might cost pennies, but multiply that by millions of requests and you’re looking at substantial monthly bills. The good news is that most LLM applications have significant optimization opportunities—often 50-80% cost reduction is achievable without sacrificing quality. The key strategies are semantic […]

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