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LLM Economics

Token math, model selection, and the true unit cost of every generation.

Your Load Balancer Is Quietly Inflating Your LLM Bill
LLM Economics
Jun 22, 20264 min read

Your Load Balancer Is Quietly Inflating Your LLM Bill

Standard load balancers scatter requests across servers at random, which breaks prefix caching and makes you pay full price for tokens you already cached. Prefix-aware routing fixes it.

Governed AI Usage: How an AI Gateway Controls Token Spend
LLM Economics
Jun 22, 20264 min read

Governed AI Usage: How an AI Gateway Controls Token Spend

An AI gateway is a control plane that wraps every model request with identity, policy, safety, and observability, turning unpredictable token spend into a number you can govern and price against.

Best AI Cost Optimization Tools in 2026: A Buyer's Framework
LLM Economics
Jun 22, 20264 min read

Best AI Cost Optimization Tools in 2026: A Buyer's Framework

The best AI cost optimization tool depends on four things: how deeply it attributes spend, whether it can enforce limits, how much of your stack it covers, and whether it connects cost to pricing.

AI Cost Optimization in 2026: A Practical Guide for Founders
LLM Economics
Jun 22, 20265 min read

AI Cost Optimization in 2026: A Practical Guide for Founders

Cut your AI bill in 2026 by working five levers in order, model routing, prompt size, caching, output limits, and inference efficiency, then re-check that your pricing still covers the new cost basis.

Self-Hosting vs API: The Real Cost Math Behind '1/6 the Price'
LLM Economics
Jun 21, 20263 min read

Self-Hosting vs API: The Real Cost Math Behind '1/6 the Price'

Self-hosting an open LLM can cost a fraction of a frontier API, but only when your GPUs stay busy. The honest comparison is GPU dollars per hour divided by your actual throughput, versus the API price per token.

Inference Economics: Why a $13B Valuation Is a Bet on the Token Spread
LLM Economics
Jun 21, 20264 min read

Inference Economics: Why a $13B Valuation Is a Bet on the Token Spread

When an inference provider raises at a $13B valuation, investors are buying the spread between what a token costs to serve and what you are charged. That spread is why your API price is not a cost floor.

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