IntermediateUpdated Jan 7, 2026
Cost Optimization for AI APIs
Reduce AI API costs by 50-80% with smart strategies.
AR
Alex Rivera
Senior Engineer
11 min read
The Challenge
AI APIs get expensive at scale.
Strategy 1: Model Selection
| Task | Model | Cost |
|---|---|---|
| Thumbnails | Schnell | $0.003 |
| Products | Dev | $0.01 |
| Hero | Pro | $0.05 |
Strategy 2: Caching
Cache identical requests. Hit rates: 10-50%.
Strategy 3: Batching
Process in batches of 10. Saves 5-15%.
Strategy 4: Resolution
Only generate at needed size.
Strategy 5: Deduplication
Prevent duplicate requests.
Strategy 6: Monitoring
Track costs and set alerts.
Strategy 7: Tiers
Offer Fast/Balanced/Quality options.
Savings Summary
| Strategy | Savings |
|---|---|
| Model selection | 30-70% |
| Caching | 10-50% |
| Batching | 5-15% |
| Resolution | 20-40% |
Combined: 50-80% savings
Next Steps
#cost#optimization#caching#performance