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A Series B SaaS Platform

LLM API Cost Optimization

92% Cost Reduction

The Challenge

The client's AI features were consuming $60,000/month in OpenAI API costs with 800ms+ average latency. Growth projections showed costs becoming unsustainable within two quarters.

Our Approach

We implemented a multi-layer optimization strategy: intelligent prompt caching, semantic deduplication of similar requests, model routing to match complexity with the cheapest capable model, and response streaming. We also restructured prompts to reduce token usage without losing quality.

Results

  • 92% cost reduction ($60k → $4.8k/month)
  • 400ms latency improvement
  • Zero degradation in output quality
  • Scalable to 10x current volume within budget

Tech Stack

PythonFastAPIRedisOpenAI APIVector DatabasePostgreSQL

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