OpenAI

How to reduce OpenAI API costs effectively in production?

The question is about OpenAI .

Answer:
1. Cache frequent LLM responses in Redis with a short TTL - repeated queries with identical inputs do not require new API calls. 2. Use GPT-4o mini or Claude Haiku for classification, extraction, and simple generation; reserve GPT-4o for complex reasoning tasks. 3. Compress prompts by removing verbose instructions and summarising conversation history to reduce context window usage. 4. Use the OpenAI Batch API for non-real-time requests at a 50% cost discount. 5. Monitor token usage per endpoint with LangSmith or custom logging to identify high-cost features.

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