PriceIndex / Editorial
News & insights
The economics of AI and the tools behind it. In-depth guides, model analysis and smarter decisions for your stack.
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Prompt Caching / Analysis
Prompt Caching Economics: Break-Even Math for OpenAI vs Anthropic
Anthropic's prompt caching charges an upfront write multiplier that penalizes low hit rates, whereas OpenAI's legacy prefix caching carries zero write surcharge. Here is the mathematical derivation of exact break-even hit rates and cost trade-offs across 1k, 10k, and 100k token prompts.
Coding Models / Analysis
Claude 3.7 Sonnet Hybrid Reasoning: API Costs with Extended Thinking Tokens
Claude 3.7 Sonnet introduces hybrid reasoning at standard Sonnet pricing, but extended thinking tokens bill at the full $15/1M output rate. Here is how thinking budgets from 1k to 64k tokens impact API expenditures and how to engineer cost-effective agentic routing.
Token Pricing / Guide
AI token pricing explained: calculate the real cost of your workload
Input, output, caching and retries all shape your AI bill. A practical guide to comparing models using a consistent workload, with a transparent worked example.