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GPU Economics & Capacity Planning1 / 3

2 min lesson

Inference serving & latency

Work through this case: "An infra lead proposes doubling batch sizes to cut cost per request. What is your immediate question and which metric would you watch before approving?" Say what you would do and why.

Step 1 of 3

Cost per inference is not a property of the model. It falls out of four serving decisions made together: model size, utilization, batching and routing.

On the systems round you will be expected to reason fluently about serving without writing kernels. The mechanism that ties throughput to cost is batching: the GPU runs many requests through one forward pass, so the fixed cost of that pass is shared. Bigger batches mean lower cost per request. They also mean a request may wait for the batch to fill, which adds latency. That tension is the heart of inference serving.

Lever
Larger batches
Effect on cost/request
Lower (shared forward pass)
Effect on latency
Higher (queue + bigger pass)
Tension
Throughput vs. responsiveness
Lever
Smaller / routed model
Effect on cost/request
Lower for simple queries
Effect on latency
Lower (less compute)
Tension
Quality vs. cost on hard queries
Lever
Higher utilization
Effect on cost/request
Lower (fixed cost amortized)
Effect on latency
Risk of contention at the edge
Tension
Efficiency vs. headroom

Every cost win has a latency or quality cost attached - name the tradeoff, do not pretend it is free.