AI Ops & Deployment
Cost Per Token
AI Ops & Deployment· Intermediate
Definition
The primary unit of LLM pricing and cost analysis — the price charged (or compute consumed) per input and output token. Cost per token analysis determines the economic viability of AI use cases: high-volume, long-context applications can cost thousands per day at standard API rates.
Enterprise Context
Cost per token is the core metric for AI economics. Optimizing token usage — through compression, caching, model selection, and batch processing — is the primary lever for controlling AI infrastructure costs.
Tags
#economics#pricing#optimization
MS
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