This ignores batching - token generation is much more efficient in batch - and I strongly suspect is itself written by AI, given the heavy use of bullets
The “X—not Y” pattern is also a dead giveaway.
AI API Prices are 90% Subsidized
11–14 of 14 posts
Re: AI API Prices are 90% Subsidized
#12A much better article on token prices: https://www.tensoreconomics.com/p/llm-inference-economics-fr...
There's not much incentive to subsidize prices for OpenRouter providers for example, and the prices are much lower than the $6.37/M estimate from the article.
https://openrouter.ai/meta-llama/llama-3.3-70b-instruct
avg $0.37/M input tokens, $0.73/M output tokens (21 providers)
Llama is not even a good example, as the recent models are more optimized using Mixture Of Experts and KV cache compression.
Re: AI API Prices are 90% Subsidized
#13Re: AI API Prices are 90% Subsidized
#14Also, it ignores the fact that they will optimize it and make it more efficient like Moore’s law, so everyone is basically assuming that the price will come down over time.