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Token Production Cost

What belongs in the cost of a token?

A production-cost framework that connects the service boundary to the denominator.

Define the unit before comparing costs

A token cost comparison needs a defined workload and measurement boundary. Input processing and output generation are different activities. Model, context, batching, quality and latency requirements belong in the test description. Without that context, two quoted figures may describe different services.

Build the cost boundary

A planning framework should account for compute, memory, storage, networking, facility capacity, power, cooling and operations. Depending on the decision, financing and depreciation may also belong in the model. State which costs are included and avoid presenting an engineering subtotal as the full commercial cost.

Measure useful production

The denominator should represent tokens delivered under the agreed service conditions. Separate provisioned capacity, benchmark throughput and sustained production. In our view, reproducible measurements and transparent assumptions provide a better basis for capacity discussions than a single universal price-performance claim.

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