Earlier quoted context omitted.
This is really fascinating to me. I was reading this article and originally agreed with you, "I mean, under the covers it's got to be converting to text tokens at some point, so there is no way it's actually cheaper for Claude itself to execute." But then there is a comment below talking about how DeepSeek was able to get a huge improvement in compression by using visual tokens, https://news.ycombinator.com/item?id=4…
LLMs have a very bloated in-memory representation for text, on the order of megabytes of KV cache per byte of text. Meanwhile, for images a lossy representation is considered acceptable and it only takes up maybe a kilobyte of KV cache per byte of image. So if you can render your text into a hundred bytes of image per byte of text and then lossily expand it into 100 kB of KV cache per byte of text, you come out ahead…
An image token I recall is something like 16x16, so you get 32 bytes of overhead per pixel. And a character is minimally like 20 pixels including the whitespace, so you've jumped from 4 characters per token to maybe 12.
So 3x savings... which actually maps pretty closely to 60% savings.