LLM · Infrastructure · Cost

How we cut our LLM bill by 75%

8 July 2026 · 2 min read

When the monthly bill for our AI infrastructure started climbing, the instinct was to reach for a cheaper model. That turned out to be the least interesting lever.

The bill is mostly around the model, not in it

We traced spend request by request and found the pattern most teams find: retries, oversized context, duplicate calls, and prompts that re-sent the same static instructions thousands of times a day. The model was doing its job — we were feeding it badly.

What actually moved the number

  • Cache the boring parts. Static system prompts and reference context got cached instead of re-sent on every call.
  • Right-size the context. We stopped stuffing whole documents into prompts and retrieved only what a request needed.
  • Kill silent retries. A bad backoff config was quietly tripling some calls.
  • Route by difficulty. Easy requests don't need the biggest model; hard ones do. Routing paid for itself.

The part that's easy to skip

None of this is safe without observability. We wired tracing through every call first, so we could prove a change cut cost without quietly hurting quality. That's the whole game: cheaper is only real if reliability holds.

The result was a 75% reduction — and, more usefully, a bill we now understand.


Share this piece