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Inference Cost
The computational cost of running a query through an AI model, typically measured per token.
TL;DR
- —The computational cost of running a query through an AI model, typically measured per token.
- —Understanding Inference Cost is critical for effective AI for companies.
- —Remova helps companies implement this technology safely.
In Depth
Inference costs vary significantly across models: GPT-4o might cost $5 per million input tokens, while lighter models cost a fraction. Understanding inference costs is essential for AI budgeting, model selection, and cost optimization. Intelligent routing can reduce costs by directing simple tasks to cheaper models.
Related Terms
Token
The basic unit of text processing in LLMs — typically a word, subword, or character that models use for input and output.
AI FinOps
The practice of managing and optimizing AI and LLM costs through financial governance, budgeting, and usage analytics.
AI Budget
A defined spending limit for AI usage, typically allocated per department, team, or individual user.
Model Routing
The automated process of directing AI queries to the optimal model based on cost, latency, capability, or policy requirements.
Glossary FAQs
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