How to optimize your LLM costs (5 best practices)

The text discusses strategies for optimizing costs associated with Large Language Models (LLMs), emphasizing the importance of cost management to protect gross margins, enable predictable scaling, and improve product reliability. It outlines various techniques such as routing requests to cost-effective models, setting budgets, and using context compression to reduce token usage. The document also highlights the benefits of using third-party platforms like Merge Gateway, which offers tools to centralize routing, control costs, and maintain governance without the need for in-house development. Merge Gateway is positioned as a comprehensive solution for managing LLM expenses by providing a centralized API that aids in cost visibility and routing efficiency.