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1. Token Economics and Caching2. Routing for Cost/Quality Balance
Routing for Cost/Quality Balance
📚 Cost Engineering⏱ 10 min⭐ 95 XP
Tiered Inference Strategies
Route easy requests to low-cost models and reserve premium models for complex or high-risk tasks. The price spread between tiers is often 10-50x per token - routing is the single biggest cost lever most teams never pull.
The Escalation Pattern in Practice
request → Nova Lite (cheap tier)
├─ output validates + confidence ≥ 0.8 → serve (≈85% of traffic)
└─ validation fails / low confidence → escalate to Nova Pro / Claude tier
└─ still failing → human queue
# Result: premium prices paid only for the ~15% that needs premium capability
Batch: The Forgotten Half-Price Tier
For large, non-interactive workloads, use Batch inference: submit many prompts as JSONL to Amazon S3 and get responses back asynchronously at roughly 50% of on-demand pricing. Constraints to design around:
- No tool calling or structured-output enforcement - each record is processed independently with no back-and-forth.
- Asynchronous completion - hours, not seconds; wrong for anything a user is waiting on.
- Perfect for: nightly classification/enrichment, eval-suite runs, embedding backfills, content moderation sweeps.
Measure the Metric That Matters
| Metric | What it hides | Better version |
|---|---|---|
| Cost per token | Cheap models that need 3 attempts | Cost per successful outcome - total spend ÷ tasks completed correctly |
| Cost per request | Failed/retried/escalated requests |
A premium model at 3x the token price that succeeds first-time can beat a budget model that retries twice and escalates - only outcome-level accounting reveals this.
Tuning loop: review the routing matrix monthly against fresh eval scores - track "% served by cheap tier without escalation" as your routing health metric. Rising escalation means the cheap tier no longer fits the traffic; falling quality means it never did.
🧪 Knowledge Check
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Which metric best reflects business efficiency?
Cost per token only
Cost per successful outcome
CPU temp
Cache hit ratio only