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LLM Inference Fundamentals for the Routing Engineer1 / 3

1 min lesson

GPU economics and provider model

Use "GPU cost is mostly about keeping expensive silicon busy" to describe the practical rule.

Step 1 of 3

Everything in the previous four sections eventually becomes a number on a bill or a capacity plan. The routing engineer who can do this math is the one who earns the gray-area decisions.

GPU cost is mostly about keeping expensive silicon busy. The levers that move it are the ones you already met: paged KV, continuous batching and prefix-cache hits.

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Full explanation

From Silicon to the Dollar

FROM SILICON TO THE DOLLAR

Interactive diagram. Tab through its regions; each focused region shows its detail in the panel below.

diagram: stack

Each layer rests on the one below: cost is set at the bottom, then earned back by how well the layers above pack it.

The cost vocabulary you'll be tested on
Per-token pricing
Separate input (prefill) and output (decode) rates; output is usually pricier
Rate limits
RPM (requests/min) and TPM (tokens/min) caps per key/account