Cost optimization is the set of tactics that lower LLM spend without lowering quality: routing each request to the cheapest model that works, prompt caching for repeated context, context compression, capping output length, batching what can wait, and enforcing budgets. Applied together they routinely cut spend by 30-40%.
Why it matters
Multi-provider LLM bills can grow faster than usage because of model choice and context size. Optimization attacks both without lowering quality.
How it works
The main levers are routing to the cheapest sufficient model, caching repeated context, compressing long prompts, capping output length, batching what can wait, and enforcing budgets. Applied together they routinely cut spend by 30-40%.