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14 lessons · AI Operations

Cost, capacity, and reliability

Inspect token cost, capacity, concurrency, caching, fallback strategy, load signals, and reliability tradeoffs.

What you will practice

Read token cost inputs; Estimate request cost; Compare model cost profiles; Inspect cache effectiveness.

Use the worked examples when needed, then test your understanding without them.

  1. 01Read token cost inputsToken cost inputs separate input and output rates, their units and the model revision. This case uses fictional training rates, not a provider price quote.Practice
  2. 02Estimate request costA token cost estimate multiplies each token count by its corresponding per-token rate. Convert per-million rates before summing input and output estimates.Practice
  3. 03Compare model cost profilesModel cost comparison should use the same workload and required quality. A cheaper request that repeatedly fails the task may not be the better operating choice.Practice
  4. 04Inspect cache effectivenessCache effectiveness depends on hit rate, eligible work and correctness. A high hit rate is harmful when responses come from stale or improperly shared entries.Practice
  5. 05Read concurrency limitsConcurrency limits bound in-flight work; they do not directly state requests per second. Throughput also depends on service time and workload size.Practice
  6. 06Estimate capacity headroomCapacity headroom compares measured demand with a relevant tested limit. State the workload and measurement assumptions instead of calling all unused resources interchangeable.Practice
  7. 07Inspect queue depthQueue depth is meaningful with arrival and completion rates. A growing queue can signal overload even while workers remain healthy.Practice
  8. 08Compare latency and costCost and latency tradeoffs must respect task quality and service targets. Choose among configurations that pass the required gates rather than optimizing a single metric.Practice
  9. 09Review fallback routingFallback routing needs explicit eligibility and limits. A fallback must preserve task, privacy and compatibility boundaries rather than serving any response at any cost.Practice
  10. 10Plan graceful degradationGraceful degradation retains a safe useful subset when dependencies fail. Make the reduced behavior explicit rather than pretending the full service is healthy.Practice
  11. 11Read reliability targetsReliability targets need a measure and window. Keep user-visible success separate from process uptime so an alive but unusable system is not counted as healthy.Practice
  12. 12Prepare a capacity noteA capacity note records observed demand, tested limits, bottlenecks and the next safe experiment. Include uncertainty rather than promising unmeasured scale.Practice
  13. 13Review cost anomaliesCost anomalies require separating request volume, token length, model selection and retries. Compare those drivers before treating an invoice increase as a provider error.Practice
  14. 14Cost and reliability checkpointA cost/reliability decision should preserve quality, latency, privacy and bounded failure behavior. Resource savings do not justify silently breaking another contract.Practice