TutorialsAdvancedCost Optimization for AI APIs
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

TaskModelCost
ThumbnailsSchnell$0.003
ProductsDev$0.01
HeroPro$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

StrategySavings
Model selection30-70%
Caching10-50%
Batching5-15%
Resolution20-40%

Combined: 50-80% savings

Next Steps

#cost#optimization#caching#performance