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LLM Economics

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

Page 8 of 8

Jun 21, 20264 min read

Inference Economics: Why a $13B Valuation Is a Bet on the Token Spread

When an inference provider raises at a $13B valuation, investors are buying the spread between what a token costs to serve and what you are charged. That spread is why your API price is not a cost floor.

The Margin Memo

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