Latest / Agentic Conversations (formally mlops.community) / Why Your AI Bill Will Double Before It Gets Better
Transcript
- 0:00Something we were talking about a little bit earlier around Open
- 0:03the Eyes, release of guaranteed capacity.
- 0:06That just happened, right? I find it really interesting
- 0:10because it's not advertised as a discount mechanism.
- 0:12It's, it's advertised as a, you know, guaranteed capacity, you
- 0:16know, and, and we're just. Saying like, if you need this,
- 0:19you're always going to have it, so you're never going to be
- 0:22without resources. We're not going to go down on
- 0:24you. Exactly.
- 0:26But from our standpoint, we haven't really seen capacity
- 0:28issues. So it's almost like they're
- 0:30they're solving a problem that doesn't exist yet.
- 0:32That has to be very hard for you to look at and it probably makes
- 0:36your job like you have a fixed price you can't go over.
- 0:39I mean, there's lots of ways to address that.
- 0:41At the same time you, you see the subscription model going
- 0:44away and you know, usage base or a combination of that, those
- 0:47things happening. And that's the reason why
- 0:49because it's fixed, prices just don't work anymore.
- 1:04All right. I'm here with Josh working at
- 1:06Superhuman leading the fin OPS. I want to hear about your
- 1:10journey into tokenomics. It's been about a three-year
- 1:14journey overall, but but yeah, prior to Superhuman, and I'm at
- 1:19the time when I joined them, they were Grammarly.
- 1:22I was at AWS and, you know, had no exposure to AI when I was
- 1:26really there outside of just managing some of the billing
- 1:28aspects of it. Come to Grammar Lane, you know,
- 1:30we have some hosted models that I was helping, you know,
- 1:33distribute the cost and, and report on.
- 1:36And then on early 2023, we started using this new thing
- 1:39called Azure Open AI. So I started kind of poking
- 1:43around. I'm like, I think this is going
- 1:44to be kind of big. So I want to understand like if
- 1:47there's a area where I can help. So I started kind of poking
- 1:51around, asking questions and found all this is like a fixed
- 1:54capacity that we're, you know, we want to make sure we're
- 1:57utilizing enough of it. And, and, you know, also
- 2:00understanding, oh, if we don't have enough is this will create
- 2:04an outage for some of our products.
- 2:05So we got it. So introduced some new concepts
- 2:08like I've never been involved with making decisions that could
- 2:11actually cause an outage on one of our products, right.
- 2:14That wasn't like a thin up thing, but it kind of fell into
- 2:16my scope. So, but as I started doing that,
- 2:18I realized after going to some Fin OPS Foundation events that I
- 2:22was one of the only ones doing that type of work back then.
- 2:26So I certainly encourage anyone to, you know, even definitely in
- 2:31this day and time with AI, just most practitioners, if you poke
- 2:34around hard enough, you'll find a area where you can drop a lot
- 2:37of impact for sure and help. But it's funny how you started
- 2:41poking around and then you realized, wait a minute,
- 2:43resource management is kind of seems like my job in this whole
- 2:47new field. Yeah, resource management, a
- 2:49very, very expensive resource, yeah.
- 2:51Especially in those days, yeah, maybe talk to me about the
- 2:53trends and how you saw the trends dropping and then now
- 2:57reversing of the trend of the cost and.
- 3:00You look at me a year or two ago, I'm like, oh, costs are
- 3:03just falling off a Cliff and now it's just going to be the the
- 3:06vendors fighting for market share and it's going to be raced
- 3:08to the bottom. So yeah, in the first probably
- 3:12year or two sold over 80% drop in cost per token.
- 3:17And I think some of that was the vendors getting more mature and
- 3:23the infrastructure behind the scenes and also them trying to
- 3:27gain grab market share. And then over the, I'll say
- 3:31starting in, you know, really last year, but over that
- 3:35following year, from 2024 to 2025, the trend started to
- 3:38change and, and it whether it started where it was not, you
- 3:42know, maybe they were about the same to now with, you know, for
- 3:46example, GBT 54IS like double the cost of five one.
- 3:51I think Opus just came out today and it's like double the cost.
- 3:54On top of that, you've got other skews like web search and and
- 3:59reasoning and of these other aspects that are just
- 4:02compounding the cost. So now we're the trends are is
- 4:06not only is volume like a hockey stick right now, but costs are
- 4:10rising too. No matter like what is pizza
- 4:12elsewhere, rates are going up. For sure.
- 4:15And how did the way that you were doing your job back when
- 4:20you thought in the next 6 months, is it just trending to 0
- 4:25versus now where you're kind of looking at it and you're saying
- 4:28it may go up, but it definitely is not going down?
- 4:33It's going to just, it's, it's going to exponentially go up.
- 4:38It's that's your prediction you're calling in here.
- 4:41It's only going up. It's only going volume is not
- 4:43going to go down. If it's not going up then as a
- 4:46business, then you know that's a bad for us, right.
- 4:49So you know, and ideally we want more and more users using the
- 4:53products, but we just want it to scale efficiently.
- 4:55But the, you know, I would say with external LLM that's, that's
- 4:59it's becoming in my opinion of larger and larger financial risk
- 5:03because of the the rate trends that we're seeing here.
- 5:06So volume and we know is going up.
- 5:08We can't have pricing also doubling just about every time
- 5:11too. And then that's where I'm
- 5:12looking at exponential increases.
- 5:15So fascinating. So that's making you nervous
- 5:17looking at how it's been performing and recognizing that
- 5:21the volumes going to continue to grow even if it stays at this
- 5:25price that we're at right now. That's scary.
- 5:28But there's a non 0 probability that we're looking at the prices
- 5:33also increasing. And so that forces you now to
- 5:38look at different options. How does their outlook change?
- 5:42The bulk of of Grammarly's suggestions are based on open
- 5:47source models. And that is where I really want
- 5:50us to go just from a cost aspect, you know, but we're also
- 5:54an AI company, so we have a special set of teams and skills
- 5:57that can can make that happen. Most companies don't have that.
- 6:01But I would say right now, I mean, we, we have two sides of
- 6:04this AI coin. We have our production cost
- 6:06which far outweighs our AI coding internal cost.
- 6:10I would say right now most companies are dealing with the
- 6:12AI coding side of it and that's probably what they should be
- 6:14dealing with. But for us, it's like both
- 6:16sides, we've got them really managed to make sure and that
- 6:19that both are efficient and measuring the value in some way.
- 6:23Yeah, because the product is powered by LMS, yes.
- 6:30Again, mostly open source, but more and more as you want to
- 6:35have very high velocity of releasing product and such.
- 6:38I mean those Frontier models are great for that.
- 6:40So that's where the growth is happening on the external alum
- 6:44side. And you also mentioned to me
- 6:46before we hit record on the hidden costs around the price
- 6:51increases just with the models. Can you talk a bit more about?
- 6:53That Oh yeah. So when you are looking at say,
- 6:56you know, maybe using GBT 51 for whatever reason and, and five
- 7:01four comes out and let's say you have data residency, U.S. data
- 7:04residency requirements. So now you, you see the rates
- 7:07and you start using it and you're like, you know what, we
- 7:09do want to use this and we see that as two times the cost, but
- 7:11we see the value here. But then you don't notice the
- 7:15fact that there's a 10% data residency charge on top of that
- 7:19that didn't exist with the five one model.
- 7:21And that's happening with the four Opus 4, I think 46 or 47
- 7:25and later. And basically Anthropic and Open
- 7:29AI are both adding this premium to US based models.
- 7:33You're already seeing this before this with the
- 7:35hyperscalers, AWS and GCP and such.
- 7:38But now it's that's another premium you're paying a lot of,
- 7:41I believe a lot of companies are kind of overlooking.
- 7:44Yeah, you don't realize that until you later need it.
- 7:47And then you go, oh, we're getting charged for that.
- 7:50Yeah. So whenever you're doing your
- 7:51estimations and comparing these models, you just make sure you
- 7:53look at the fine print about the this data residency piece
- 7:56because at 10% adds up. Yeah.
- 7:59And Speaking of estimations, I know that you've built a cool
- 8:02cost calculator. You vibed it.
- 8:05I vibed it. I mean it.
- 8:06So I'm not an engineer. And I was telling him before
- 8:10that, you know, before I started a grammar, I had really no
- 8:14experience with AI at all. And which is my kind of poking
- 8:18around in curiosity that kind of put me where I am today.
- 8:20So I was took the initiative to say, OK, I'm going to space out
- 8:26some time in my days to spend time building some agents to
- 8:30help when I was practice. And I really, I knew I wanted to
- 8:32build some type of calculator and didn't really know what it
- 8:36was going to look like. And I built like a HTML version
- 8:39and then a CLI version and it's using, We have the LLM proxy
- 8:43that already has pricing in the back end of it.
- 8:46So it's just grabbing that information and I did it in
- 8:49about 15 minutes. And people use it.
- 8:53It's just pretty new, but I've had our, some people, a part of
- 8:57our evaluation team start playing around with it and they
- 9:00were very happy with it. And what this is done, you know,
- 9:03when you're evaluating and I'm just learning this myself too,
- 9:07more about this process for the workflow at least is that they
- 9:11are building these prototypes and up till this calculator was
- 9:15here, they didn't really have a good way to go and estimate
- 9:18cost. They would build the prototypes,
- 9:19get a sense of the maybe what the request per second will be
- 9:22and you know, different steps this agent's taking and the
- 9:25token types and all of them and token volume.
- 9:27And they would send it to me in a spreadsheet and then I'd run
- 9:29the numbers and estimate it for them.
- 9:31And now they can just hit the CLI and it's going to bring in
- 9:34OK for this model, this type of agent would call system out and
- 9:37it's safe to the calculator. And then they bring in another
- 9:39model, do the same thing, save to the calculator.
- 9:41And then they now they understand before they even
- 9:43start doing an experiment that what the costs are going to be
- 9:47and if it's even scalable. And she made the comment to me
- 9:50that there have been times where they did a prototype, went to do
- 9:53the experiment, was too expensive and had to start over
- 9:55again. So not only is is this helping
- 9:58us keep costs down, but also speeding up development velocity
- 10:02because they don't have to go back to the board.
- 10:04They know what the costs are going to be before they get past
- 10:06the prototype typing stage. Yeah.
- 10:09And that's just an example of how you recognized this is
- 10:13something that's happening. Can I make it easier on the
- 10:17folks who are closer to this problem?
- 10:20How can we get these tooling? I don't want to be in a
- 10:23spreadsheet doing estimates anymore.
- 10:24That's not where my true value is.
- 10:26My true value is is getting maybe building, thinking about
- 10:30these tools and building them and then putting them in the
- 10:32people's hands that are actually doing the work to make the tool,
- 10:35the, the agents or what have you.
- 10:37And then, you know, again, shift left, get that in early as
- 10:40possible. I would love for the product
- 10:42people to start maybe playing around with us if they have the
- 10:45data to do it right. So I want to be as early in
- 10:47development cycle as possible. And this really helps with that.
- 10:50And honestly, this FP and a, my counterpart in FP and a
- 10:54hopefully she sees this that, you know, kind of said, Hey,
- 10:57could we book some kind of calculator?
- 10:59And I'm like, you know, I think I can, I don't think it'd be too
- 11:01bad. And and then, you know, about a
- 11:03week later I had this thing. So, you know, it wasn't even
- 11:07totally like me saying I need to go do this.
- 11:09It was like, you know, collaboration with the
- 11:11financing. Oh, I think we should we start
- 11:13working toward this. And that that piqued my
- 11:14curiosity and the luck I could. Do it.
- 11:17And I like how the evaluation team gets to now understand this
- 11:21and that's probably one of the core metrics that they're
- 11:23looking at as they're evaluating if this is feasible.
- 11:26Exactly. I know another piece of that is
- 11:30support request to go to our channel, they can send in a
- 11:33spreadsheet or what have you if they somebody wants.
- 11:36And then my support bot is going to use my calculator I built to
- 11:38calculate that. And so I that's one thing I
- 11:40don't have to go and do anymore. OK.
- 11:43So tell me more about where you're thinking of your ability
- 11:48to add products or empower the engineering team, the rest of
- 11:53the organization with this knowledge because they're closer
- 11:57to those problems. So I know where the data is, I
- 12:01know how to kind of structure like what things should properly
- 12:05cost and and so that's kind of the magic I kind of have for
- 12:10myself and I just need to take that.
- 12:12And I think for all 5 thinnest practitioners probably have the
- 12:14same knowledge, but they need to take that put it into some kind
- 12:17of tooling. So it's closer to the
- 12:19engineering in the development process.
- 12:21And then shift their focus up in the organizational and be
- 12:24focused more on strategy and and and actually just enabling the
- 12:30teams to make better decisions moving forward on the products,
- 12:34no matter, you know, even if it is going to be something
- 12:36expensive that they have understanding all.
- 12:38Yeah. Well, this is we have a
- 12:40reasoning behind this because you know, product market fit or
- 12:43what have you. So if everybody can move forward
- 12:46from engineering up to in product to obviously the C-Suite
- 12:49with making decisions on knowing what the costs are ahead of
- 12:51time, we're going to be in a much better state as a business.
- 12:54And if we looked back at again, going through that journey that
- 12:57you've had of when you first were encountering AI on Azure
- 13:04with Open AI and then versus now and the maturity that you feel
- 13:09like you've been able to come into.
- 13:12Can you explain some of the things that now you're like we
- 13:15could not live without XYZ? Or say our telemetry streams.
- 13:22Telemetry streams. From from my perspective, I
- 13:26built some telemetry streams. So we have LLM proxy as home
- 13:29build that that gives me the token volume by calling service.
- 13:33And then a feature is another, you know, step below a calling
- 13:36service. So like, for example, we have
- 13:38our main AI chat and there's a bunch of connectors for that.
- 13:41And that's a bunch of features, thousands of features, all those
- 13:44connectors. So I take that information, bump
- 13:46it into our, our, our cost reporting platform, which is a
- 13:50third party and, and then allocate cost based on the open
- 13:53AI bill. And I can do that for Bedrock
- 13:57and, and any other vendor that we're, we're bringing into that,
- 14:00that tool. And all it's doing is looking at
- 14:02the token type. And then, you know, looking at
- 14:05that cause versus the token volume of each service and all
- 14:08these other metadata that's using it and then proportionally
- 14:10allocating it by token type service and all those things.
- 14:14So without that we would have, we would not have visibility to
- 14:17actually what these agents. Cost.
- 14:19And then are you looking at spikes and trying to figure out
- 14:23what's going on? Why did we just spend a lot of
- 14:25money here? Yes, I've got agents that are
- 14:29starting to do that a little bit for me.
- 14:31But I would say our we, we don't have a lot of spikes scales with
- 14:37business hours. Just about all our production
- 14:39stuff just scales with business hours.
- 14:41Now we'll see a trend all of a sudden, you know, cash tokens
- 14:43are going down and costs are going up.
- 14:45Like we'll see things like that we need to pick up.
- 14:46But it's very, very rare that we have like a big spike outside
- 14:50of, you know, research and use cases or experiments that you
- 14:52would expect that. But usually if it is a giant
- 14:54spike, it's usually from my experiment that maybe, you know,
- 14:57was a little higher than expected or, you know, research
- 15:00that I knew about ahead of time. Speaking of research, you had
- 15:03mentioned before we hit record about the research team and how
- 15:06they're being empowered also by some of the stuff that you're
- 15:09doing. Can you explain that?
- 15:11Well, yeah, I'm, I'm trying to actually just today sent
- 15:13something to them about sent them the calculator and said,
- 15:16hey, this is going to be of use to you.
- 15:17But no, they, I think what we're talking about is around
- 15:19optimization where and it was touched on in the keynote today
- 15:22too. And I thought it was a great,
- 15:23great presentation and saying, you know, optimization in the
- 15:26cloud was just, you know, optimizing resources and, you
- 15:29know, buying savings plans in our eyes and things like that,
- 15:31that fin OPS going to handle. Or it's just more
- 15:34straightforward and it doesn't really impact the product at the
- 15:36end of the day. When with LLMS, whenever you're
- 15:39changing, OK, you know, cashing rates or I'm trying to reduce
- 15:44output tokens and input tokens and all these things and trying
- 15:47to use cheaper models that actually impacts the output and
- 15:49the user experience. Drastically.
- 15:51So it is so much more nuanced. So I have found much more
- 15:54success with optimization when this research LED optimization
- 15:58where our researchers are looking into saying, OK, I think
- 16:01we could probably use maybe a mini model combined with a
- 16:03standard model and not impact our latency, which latency is a
- 16:07very important aspect there. You know, all our stuff needs to
- 16:10be pretty much sub one second latency.
- 16:13So you know, it's not going to impact latency and we're going
- 16:16to still getting really good outputs and saving money.
- 16:19So they, they, you know, maybe they'll come out with the
- 16:22initial kind of launch of, of an agent and then from there they
- 16:27look for ways to optimize it. We do the same thing with our
- 16:30open source LLMS and we launched speculative decoding last year
- 16:33and it saved us a bunch of money and on the on the open source
- 16:37models and we're just trying to try to try to learn from those,
- 16:41those teams and optimizations they did there.
- 16:43And how can we apply this to these external LLMS?
- 16:46And and again, it's all usually the big heavy optimizations are,
- 16:50you know, really started from the research side.
- 16:53And the product research is what fascinates me the most on that
- 16:56because it's not like AI researchers.
- 16:59It's not. It's, as you mentioned, the
- 17:03product is so affected by any little changes in the AI side of
- 17:09the house because you're in a very unique situation where your
- 17:14product is driven by AI at the end of the day.
- 17:19And so you have to make sure that that's the highest quality
- 17:22product you can put out. But also, your main job is
- 17:26making sure that it you're just not using and bringing a bazooka
- 17:30every time you need to do the smallest little comma update or
- 17:33whatever. Exactly.
- 17:35And we have data behind the decisions we've made and we've
- 17:38you know and I think most companies like this, but we just
- 17:40like the data. You know, right now we have the
- 17:42cost data and now we need to better tie that to revenue and
- 17:45then other and experiments and you actually get experiment IDs
- 17:48into the telemetry streams. I was talking about then seeing
- 17:51what the cost of this experiment was and was it worth it or not.
- 17:54So like it's, you know, while we've been in this and I've been
- 17:58doing this work for three years now, we're still like getting to
- 18:01that value phase is hard, especially as you acquire
- 18:05companies and different products and different measurements, but.
- 18:07Bring them into the fold. When you say experiments you
- 18:10mean doing small little rollouts on?
- 18:13Or do you mean like behind close?
- 18:16We have a very mature experimentation platform where
- 18:18we're actually, we'll be running live experiments on, you know,
- 18:21they usually AB test to see, you know, how maybe a new new change
- 18:26or new feature impacts. It could be in product
- 18:31engagement type of rates. And and that's how we kind of
- 18:35decide on or should this thing go full scale or do we need to
- 18:39go back to the drawing board? And again, it's interesting to
- 18:42me because it is product type of features, but then inside of the
- 18:48core product, there's probably a lot of different experiments
- 18:52that you're running with all the models or with the ways that
- 18:55you're making those models useful.
- 18:59It's the same product for me as the end user.
- 19:02I'm still getting if it's we're talking about Grammarly.
- 19:04I'm still getting suggestions on my grammar, but you behind the
- 19:08scenes are running these experiments that I may or may
- 19:11not know about. You may not know about and all
- 19:12of a sudden you're engaging with it in a, you know, slightly more
- 19:17volume and you may not even realize it, but then, you know,
- 19:20our, our people are picking up on, OK, we got more, more, more
- 19:24accepts here for this suggestion.
- 19:26Or, or they actually, you know, the clicks on this specific
- 19:29agent actually increased over time or the amount of time turns
- 19:33they had with this agent increased.
- 19:35Like little things like that that indicate, hey, this is
- 19:37actually making a meaningful difference for our customers.
- 19:40And you want to be able to, just to close the circle on this, as
- 19:44you mentioned before, when you have those experiments,
- 19:47recognize the cost of those experiments.
- 19:49Exactly. Tie that to the cost
- 19:51fluctuations that we're that I'm seeing on my side because right
- 19:54now it I'll see these spikes and I do see spikes.
- 19:56It's usually around experiments and I have to do a lot of
- 19:59research or have you know, I'll let them go do it for me to
- 20:03figure out what exactly is causing this.
- 20:05And even then, the correlation is light.
- 20:08It's really hard to to find a correlation.
- 20:10So you know, we've got, we got a couple teams collaborating to
- 20:13bring that data into our our cost reporting so we we can
- 20:17actually measure the cost of those experiments.
- 20:19Because I imagine the teams aren't saying like, hey, I'm
- 20:22going to run this experiment now, like just in case.
- 20:25Sometimes, sometimes they'll. Give you a heads up.
- 20:28I've been very blessed with with a good relationship with a lot
- 20:31of the the teams that do these experiments.
- 20:33So the larger ones, they usually come to me and either to
- 20:35estimate what this is going to cost or just kind of let me
- 20:39know, hey, we're going to run this thing.
- 20:40So I know about the big ones, but then they're still small
- 20:43ones that are supposed to be small, but then they end up
- 20:45being a little bigger than expected, right?
- 20:47But overall, you know, there's really good communication
- 20:49between us. So on those times where you see
- 20:52the spikes or when you're getting a heads up, is that
- 20:55something that now you're expecting folks to have a better
- 20:59idea of because of the cost calculator that you created?
- 21:02Yeah. I mean, ideally they would, they
- 21:04wouldn't need me to do those estimates beforehand or at least
- 21:07they'll have an idea of what the costs are going to be before
- 21:10they run the experiment. And I haven't built this into it
- 21:13yet, but I'd like to actually have that going into a doc, a
- 21:16coded doc, you know, one of our company.
- 21:18But I'd like for whatever submissions that they have in
- 21:21this, this tool. And they can, I'm assuming they,
- 21:24I'll probably have something where they can actually choose,
- 21:26OK, this is something to submit. And then it goes to a dock where
- 21:29we see all the estimations in aggregate and then can pick up
- 21:33on any red flags or at least do better planning.
- 21:36OK, we know we're running this thing during this date or within
- 21:39the next few months. We usually don't have dates
- 21:41until, you know, pretty late into the process and we can
- 21:44better plan on, you know, what our finances or costs are going
- 21:47to be down the line. And also compare it with the
- 21:49real cost to make sure that hey is our calculations, are we
- 21:55projecting, is my calculator. Broken or is, you know, request
- 21:59rates are a little, you know, off.
- 22:01So yeah, that's true. And what are the different
- 22:04inputs that you ask folks to give you on this cost
- 22:08calculator? So average request per second
- 22:12more minute and then average request size.
- 22:14So when I say request size, that's input tokens, output
- 22:18tokens, cashed input. And these are all things that I
- 22:21said they're kind of building the prototype and, and testing
- 22:23out the, the outputs that's coming.
- 22:25You know that they they get those token counts from as a
- 22:28response body from the the open AI or Anthropic, whatever you're
- 22:32using. And I wasn't clear when you were
- 22:34talking about how you have the research, the product research
- 22:37team, then they have this knowledge of we can do XYZ with
- 22:43these models or we can cache this, or we can set up a
- 22:46different architecture that will be a better product experience.
- 22:51Does that then get propagated through the different teams so
- 22:55that whatever next team knows oh I now have the ability to make
- 23:03my experiment much cheaper? We could be better about that,
- 23:07we could be better about advertising how teams are doing
- 23:10this. Well, one other issue there
- 23:12though is you know, when you look at our mail product, the
- 23:14way they use LLMS is way different than than the way say
- 23:19Grammarly uses LLMS or even our new Go product.
- 23:22So that is one kind of issue. Now I think there should, could,
- 23:25should be more sharing across the, the product or the business
- 23:29units and, and those products because I'm sure they're still
- 23:32learnings there. But again, you know, these
- 23:34acquisitions happen not that long ago.
- 23:36So it's, it's going to take time for those things to be sure.
- 23:39And I think it's probably part of my job to make sure that
- 23:42those are broad and broad kind of broadly told to the company
- 23:48so that other people can't take advantage of.
- 23:51But that's something I think we can improve.
- 23:53Well, it does feel like what you're saying too around a lot
- 23:59of times folks will try and let's use the easy example of
- 24:02just caching certain results or certain tokens so that you can
- 24:07spend less. But then it ends up having a
- 24:10worse product experience some of the time.
- 24:13And so you want to make sure that the teams aren't using that
- 24:18type of architecture at the cost of like having less token cost
- 24:25I. Guess Oh, exactly.
- 24:26And I mean, I first and foremost is always the best product for
- 24:30our customers. Like we, we are not going to
- 24:32sacrifice that, especially in this very competitive area that
- 24:35we're in. We're not going to sacrifice
- 24:37that at all. But it's more about OK, be
- 24:39dealing the best product. But what are some of the things
- 24:41that that are we can still deliver the best product, but
- 24:44also save money on the back end. So the team is just because
- 24:48these researchers have much deeper understanding of these
- 24:52LLMS, they're able to go in and tweak those certain things or
- 24:55know the direction to go. And then they are in in the
- 24:59position to go in and evaluate the outputs and kind of go
- 25:02through that process to make sure it's all good.
- 25:04There's no way a fin OPS person could could do that even if they
- 25:08knew how to adjust the LLMS and make it cheaper.
- 25:11Evaluating the outputs in a way a data scientist or a researcher
- 25:15or a company with computational linguist as well.
- 25:17They that's a whole another skill set that, you know, fin
- 25:21OPS people aren't going to have. So that's what makes this a lot
- 25:24harder to do. I mean, I've also tried to use
- 25:26claw to optimize claw and our, our like clawed API products
- 25:31and, and it gives good advice, but it's usually still just not
- 25:35quite, quite there. We've already, you know, tried
- 25:39it or the impact wasn't, you know, that large, but that could
- 25:43be another Ave. is just use AI to optimize AI.
- 25:46So tell me about how this reserving capacity kind of cost
- 25:53benefit analysis goes in your head.
- 25:56Do you get cheaper tokens if you reserve more capacity?
- 26:00And is that something you even look at, or is it something that
- 26:04has kind of gone out of fashion? So early, early on, that was
- 26:08really the only reserving capacity as you're up in the eye
- 26:13of the time, PT use was the only way to get low consistent
- 26:16latency. And as I mentioned with with
- 26:18Grammarly, you know, sub one second latency is just hugely
- 26:22important for our product. So yeah, we need a low
- 26:25consistent latency. So yeah, in the beginning I was
- 26:27managing capacity, having to buy capacity for the peak.
- 26:30And if we didn't, you know, we would scale beyond our our peak
- 26:33and and have an outage. But then over time, we did see
- 26:37token rates come down for that capacity, but it was a really
- 26:41difficult thing to manage. One, the actual utilization of
- 26:46the capacity you could get, you can get metrics to know what
- 26:50your utilization was, but understanding it beforehand was
- 26:52really hard because you know, everything's measured in these
- 26:57units, abstracted units that Azure measures them in.
- 27:00And depending on the request size or shape that the each
- 27:05agent is sending, that utilization is going to be a
- 27:07little different. So knowing that ahead of time
- 27:09was tough. RL and proxy team actually built
- 27:12a way they call it shadow traffic where it would mimic the
- 27:16traffic of this thing that was going to be coming out to see
- 27:20what would in load test the actual capacity and see what
- 27:24the, you know, peak tokens per minute were.
- 27:27And then that's how we would estimate, OK, we need to add
- 27:30this much more capacity for this new thing that's about to launch
- 27:33or you know, we can actually reduce capacity because things
- 27:35have come down. So that was back in that day,
- 27:39but it was just still very difficult to measure ahead of
- 27:42time and it was a lot of this mathematical lean limbo and
- 27:46exhausting. Then I want to say it was like
- 27:49late 2024, early 2025, Open the Eye came out with priority
- 27:53processing. So this has a late latency
- 27:56SLA's, availability SLA's. It is double the cost as far as
- 28:00from a rate perspective as the standard RAID.
- 28:04But again, we needed a low latency.
- 28:06What attracted me to it was I didn't have to manage capacity
- 28:09anymore because this is completely on demand And so it
- 28:12scales with our usage. Our usage scales with with
- 28:14business hours. So then I did the numbers and
- 28:17looked at, OK, if we had the even looked at if we had an
- 28:22ideal amount of reserve PT use and then also with our proxy
- 28:26sent some traffic to priority processing.
- 28:29Like what you know, could that save us money in general, just
- 28:32comparing PT US, you know, fully using PT us versus priority
- 28:35processing. And really it came down to you
- 28:38could see some savings with the minis and nanos of the world,
- 28:41but you couldn't, it wasn't enough to, to need to manage
- 28:46that capacity with the standard size models.
- 28:49There was no savings even with using PT us.
- 28:51And this is a, this is a year or so ago, it may have changed, but
- 28:54I doubt it. So priority processing was an
- 28:57absolute no brainer. Not on top of just making my
- 28:59life easier. It also allowed it makes much
- 29:03easier to allocate cost because again, it's just very difficult
- 29:06to understand how much of a single service he's using of, of
- 29:10this PTU. Because yeah, you could look at
- 29:13token volume of raw, but tokens are not equal across agents.
- 29:18And I took so it was just very complex of this and I improved
- 29:21our visibility, saved us some money at that time at least and
- 29:25and and it made my life a lot easier.
- 29:27I can only imagine you doing this complex math like what's
- 29:30the right blend of PTU or just straight token.
- 29:35Pretty large people sheets out floating around.
- 29:38And then you're like, wait for quality of life.
- 29:41Let's just do it on this there. That should be one of the
- 29:44factors too. Like you don't have to do this
- 29:47crazy math anymore. You know what you're going to
- 29:50get. And it also if it's the same
- 29:53more or less the same price then it's a no brainer.
- 29:57Exactly, exactly. And then something we were
- 29:59talking about a little bit earlier around Open the Eyes,
- 30:02release of guaranteed capacity. That just happened, right?
- 30:07I find it really interesting because it's not advertised as a
- 30:10discount mechanism. It's, it's advertised as a, you
- 30:13know, guaranteed capacity, you know, and, and I'm just.
- 30:16Saying like, if you need this, you're always going to have it,
- 30:19so you're never going to be without resources.
- 30:22We're not going to go down on you.
- 30:23Exactly. But from our standpoint, we
- 30:25haven't really seen capacity issues.
- 30:27So it's almost like they're they're solving a problem that
- 30:29doesn't exist yet. Or they're foreshadowing what's
- 30:33coming. So I'm very interested to see
- 30:35how this play out. It could also be first a first
- 30:38step toward a savings planner RI kind of construct.
- 30:40But but yeah, nonetheless, I, I see a lot of financial risk in
- 30:43these external loan providers and, and prices are going to
- 30:46continue to rise and or they're going to want multi year
- 30:50commitments. Because with the guaranteed
- 30:53capacity, you can't do that for a month, right?
- 30:55Oh. No, no, they're multi year is is
- 30:58what I believe that they're looking for there.
- 31:01Yeah, yeah. Which I don't know 100% for
- 31:03certain, but yeah, that's, that's my impression.
- 31:05Yeah. That is something that now
- 31:08again, you're thinking about it and you're starting to realize
- 31:11these cost benefit analysis and saying, huh, if we're good
- 31:16enough now we're never going to change.
- 31:19But then later down the line, if it starts to get a little shaky,
- 31:24now you have to recognize, is it worth it for us to get this
- 31:28guaranteed capacity? Or as you mentioned earlier,
- 31:31too, like they're slipping in a lot of new costs like the data
- 31:36residency, but now there's this new cost on this.
- 31:40And so they're almost upselling you in every way, shape and
- 31:43form. Exactly.
- 31:45And I think it's really hard from my perspective at least to
- 31:48do any kind of multi year commitment against, you know, in
- 31:51this AI world that we live in that is that's really hard to
- 31:55look at all the changes in the market and say, OK, we're going
- 31:58to be using, you know, said provider for three years.
- 32:02So it's just it's too fast-paced.
- 32:04So yeah. But if there are people that are
- 32:07probably in position to, you know, be able to do that, our
- 32:10proxy also gives us the ability to kind of use whomever we want
- 32:14to use, which is it's nice having a Bender agnostic proxy
- 32:18for that.