LLM Cost Optimization

Cut LLM costs by 50–90% with the right combination of caching, model selection, prompt optimization, and self-hosting.

When to Use This Skill

Use this skill when:

• LLM API spend is growing faster than revenue
• You need to attribute AI costs to teams, products, or customers
• Implementing caching to avoid redundant LLM calls
• Deciding when to switch from API providers to self-hosted models
• Optimizing prompt length without sacrificing quality

Cost Levers by Impact