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The Role & Your Charter: Owning Cursor's Inference Path1 / 2

2 min lesson

Scale, economics and what 'good' means here

Use the lesson to respond to this: "A provider starts returning 429s under your traffic. Is that a failover problem or a capacity problem and what does the distinction change?" Keep the answer plain.

Step 1 of 2

The role requires comfort with "cost/performance tradeoffs at scale: GPU utilization, provider economics, capacity planning." Routing decisions move a real bill, so you need to talk about money and capacity as fluently as you talk about latency.

Provider economics you should hold in your head
Per-token pricing
Input and output tokens priced separately; output usually costs more. Routing to a cheaper model directly lowers cost per request.
Rate limits
Providers cap you on TPM (tokens/min) and RPM (requests/min). Hit the cap and you're throttled - a capacity problem, not an outage.
Committed capacity
Reserved/provisioned throughput trades a fixed spend for guaranteed headroom; on-demand is flexible but rate-limited and pricier at peak.
GPU utilization
For self-hosted inference, idle GPUs are pure waste; batching raises throughput per GPU but adds queueing latency.

The context makes efficiency existential, not nice-to-have. Anysphere runs a very small team against very high ARR, so output per engineer and per GPU dollar is the whole game. A routing change that shaves cost per request at millions of requests is real money and "handle millions of requests" is the baseline expectation rather than a stretch goal.

Lever
Prompt / prefix caching
Effect on cost
Skips recompute on shared prefixes
Effect on latency / quality
Big latency win on cache hit; correctness risk if stale
Lever
Aggressive hedging
Effect on cost
Higher cost - you pay for the loser
Effect on latency / quality
Buys tail latency and reliability; per-surface call covered in the four-way tradeoff

Levers beyond the pricing basics above - each still has a latency or quality side effect.

Define "good" in SLO terms and be ready to put numbers on it. Vague answers about "making it fast" lose to a candidate who says "p99 under X for Tab, four-nines availability on the gateway and a cost-per-request budget I'd track per surface."