LLM Economics
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LLM Economics

Token math, model selection, and the true unit cost of every generation.

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1,000x Cheaper AI Inference: What It Would Actually Do to Your Margins
LLM Economics
Jun 25, 20264 min read

1,000x Cheaper AI Inference: What It Would Actually Do to Your Margins

Even a 1,000x cut in inference power costs would reshape AI unit economics, but only the share of your bill that is energy moves at that rate, not hardware, overhead, or provider markup.

OpenAI's Custom Chip and What It Actually Means for Your API Bill
LLM Economics
Jun 24, 20264 min read

OpenAI's Custom Chip and What It Actually Means for Your API Bill

A custom inference chip lowers what it costs OpenAI to serve a token, but your API price only drops if they pass the savings through, so model your own cost per token instead of betting on hardware headlines.

Gemini 3.5 Flash Gets Computer Use: What It Means for Agent Costs
LLM Economics
Jun 24, 20264 min read

Gemini 3.5 Flash Gets Computer Use: What It Means for Agent Costs

Putting agentic computer use in a budget-tier model can cut cost per step, but total agent cost depends on how many steps a task takes, so cheaper per token does not always mean cheaper per job.

GPU Cloud Providers in Europe 2026: The Real Cost of Data Residency
LLM Economics
Jun 23, 20264 min read

GPU Cloud Providers in Europe 2026: The Real Cost of Data Residency

European GPU clouds offer B200 and H200 capacity with EU data residency and sovereignty, but residency usually carries a price premium that you should model as part of cost per token, not treat as a free checkbox.

Custom AI Chips vs NVIDIA in 2026: What It Means for Your Inference Cost
LLM Economics
Jun 23, 20263 min read

Custom AI Chips vs NVIDIA in 2026: What It Means for Your Inference Cost

Hyperscaler custom chips like Trainium, Google TPU, Maia, and Meta MTIA are built to cut the provider's cost of serving AI, but that only lowers your bill if it shows up as a cheaper per-token price or GPU-hour rate.

Oracle Cloud GPU Pricing in 2026: H100 vs H200 vs B200 Per-Hour Cost
LLM Economics
Jun 23, 20263 min read

Oracle Cloud GPU Pricing in 2026: H100 vs H200 vs B200 Per-Hour Cost

Oracle Cloud prices H100, H200, and B200 GPUs at different per-hour rates, but the cheapest choice depends on your model size and utilization, not on which chip is newest.

TPU 8i vs NVIDIA Rubin and B200: Cost Per Token for LLM Inference (2026)
LLM Economics
Jun 23, 20264 min read

TPU 8i vs NVIDIA Rubin and B200: Cost Per Token for LLM Inference (2026)

The accelerator with the best benchmark is not always the cheapest per token, because cost per token depends on price per hour, real throughput, and how much migration and lock-in you have to amortize.

NVIDIA B200 Cloud Pricing in 2026: How to Compare Per-Hour GPU Costs
LLM Economics
Jun 23, 20263 min read

NVIDIA B200 Cloud Pricing in 2026: How to Compare Per-Hour GPU Costs

B200 rental prices vary widely across clouds, so the number that matters is not dollars per hour but dollars per million tokens once you factor in throughput and utilization.

LLM Inference Cost at Scale: Napkin Math for Founders
LLM Economics
Jun 23, 20264 min read

LLM Inference Cost at Scale: Napkin Math for Founders

To estimate LLM inference cost, multiply tokens per request by requests per month by your blended price per million tokens, then stress-test each assumption before you trust the total.

Why the Cheapest LLM Provider Won't Save Your Margins
LLM Economics
Jun 23, 20264 min read

Why the Cheapest LLM Provider Won't Save Your Margins

Switching to the cheapest LLM provider rarely rescues a thin margin, because your token volume and product design drive cost far more than a lower headline $/1M-token rate.

What a $150M/Month Compute Deal Says About Your Token Costs
LLM Economics
Jun 23, 20264 min read

What a $150M/Month Compute Deal Says About Your Token Costs

When an AI lab commits to about $150M a month for GPUs, that fixed cost has to be earned back through the tokens it sells, which is why your per-token price is really a bet on someone else's utilization.

What a $28B Neocloud Tells You About Your AI Token Costs
LLM Economics
Jun 23, 20264 min read

What a $28B Neocloud Tells You About Your AI Token Costs

A neocloud is a GPU-only cloud built for AI compute, and when one reportedly clears $28B a year, it is a signal that the compute under your LLM bill is a large, fast-moving cost you should model as a variable, not a constant.

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