Equation 5 · Part 8 · AI Inference Economics in Practice: An Advanced Technical Guide
Numerator: w - r
What this part means
The complete quantity above the fraction bar.
Its job in the formula
w - r occurs above the fraction bar. The numerator is divided by the entire denominator below it.
Full expression→Numerator: w - r→Article meaning
The passage around this formula
That convergence on roughly one tenth of base input for a cache read — independently verified today across all three platforms [ 2 , 6 , 10 ] — supports a design rule. Let w be the write-price multiplier for the chosen retention window and r 0.1 the read-price multiplier. For a prefix served identically R times within that window — the first serving is the write, the remaining R-1 are reads — caching beats never caching once . is exceeded. At Anthropic’s five-minute rate, w = 1.25 and 1.28 : the prefix pays for itself starting with the first read after the write, matching the break-even Anthropic’s pricing page states for that duration [ 6 ] . At the…
Learn the underlying idea
A fraction a/b means a divided by b. The top number is the numerator; the bottom number is the denominator, and it cannot be zero.
Open the illustrated fractions: division written vertically guide →
Sources cited in the surrounding passage
These citations provide research context; check each source for the exact claim it supports.