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AIPerformanceCost

Cutting LLM costs by 70% without losing quality

A practical playbook of caching, model cascading, retrieval, and budget alerts — with real numbers from production RAG apps.

Aaftab Patel· Co-founder & CTO June 12, 2026 8 min read
Cutting LLM costs by 70% without losing quality cover

Most teams treat LLM costs as an inevitable tax. They aren't. After shipping a dozen RAG systems we've learned that 60–80% of inference spend can be eliminated without measurable quality loss, and the rest can be governed so it never spikes.

This article walks through the patterns that actually move the needle: request-level caching, semantic caching for ambiguous prompts, model cascading from GPT-class down to OSS models, retrieval over curated corpora, and observability with per-tenant budgets. We share the dashboards we ship with every AI build and the alerts that fire before a customer notices.

Aaftab Patel

Co-founder & CTO

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