Model routingPrompt/response cachingBatchingSmall-model distillation
LLM Cost Engineering: Tokens Are the New Cloud Bill
1 min readLearnJul 17, 2026
Key Takeaway for Students
Model choice, prompt length, caching and batching typically move LLM spend by 10× before any hardware decision. Routing easy requests to small models and caching frequent answers are the highest-ROI levers.
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Model choice, prompt length, caching and batching typically move LLM spend by 10× before any hardware decision. Routing easy requests to small models and caching frequent answers are the highest-ROI levers.