Reducing LLM API Costs in Production: What Actually Moves the Needle

Automated excerpt

Right-size the model per task, not per app A common mistake: picking one "good enough" model and routing everything through it. Classification, extraction, and formatting tasks often run fine on a smaller/cheaper model, while reasoning-heavy tasks need the frontier model. Trim your context, don't just trust "big context windows" Bigger context windows tempt you to dump everything in.

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