Why AI pricing is really a memory-and-infrastructure problem, not just tokens
Kyrannio · x · 2026-07-23
A short explainer argues that AI pricing is driven by more than tokens: it is also a hardware problem.
The post breaks down the hidden infra costs behind an API bill — model weights stored in memory, memory bandwidth moving those weights, KV cache for active context, and GPUs serving many concurrent requests. The bigger the model and the longer the prompt, the more live memory and infrastructure cost each request consumes.
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