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Posted: 2025-04-13 17:40:15 UTC
This article contains some claims that remain unverified. While much of the content may be accurate, exercise care when relying on this information.
This article contains some claims that remain unverified. While much of the content may be accurate, exercise care when relying on this information.
Status
Last Updated
2025-04-13 17:40:35 UTC
Verified By
Rollup News
Token prices for large language models (LLMs) are rapidly decreasing due to open-source models, hardware innovations, and algorithmic improvements. This trend makes even intensive AI applications more affordable, encouraging companies to prioritize building useful applications and periodically evaluate newer, cheaper models.
Rapid decline in LLM token prices.
Impact of open-source models like Llama 3.1 on price competition.
Hardware innovations driving further price cuts.
Economic viability of agentic workloads due to falling prices.
Importance of focusing on building useful applications over optimizing LLM costs initially.
Difficulty in implementing evals for regression testing when switching between models.
Ensuring consistent application performance after swapping in new models.
Teams being surprised by the actual low cost of LLM usage and over-optimizing costs.