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Equation 10 · Part 9 · Comparing Frontier Model Pricing Without Comparing Apples to Oranges

addition

Ci  =  κi[(1−hi) piin+hi piin γi]  +  ρi piout.C_i \;=\; \kappa_i\Big[(1-h_i)\,p^{\text{in}}_i + h_i\, p^{\text{in}}_i\,\gamma_i\Big] \;+\; \rho_i\, p^{\text{out}}_i .
addition

What this part means

Add the term after the plus sign to the term or group before it.

Its job in the formula

Add the term after the plus sign to the term or group before it.

The passage around this formula

Collecting every distinction above into one expression makes explicit what a bare price comparison assumes without saying so. For vendor i , let piinp^{\text{in}}_i and pioutp^{\text{out}}_i be the published input and output rates; let κi\kappa_i be a tokenizer expansion factor, the number of tokens vendor i ’s own tokenizer needs to encode one fixed reference passage, normalised so κi\kappa_i = 1 for whichever vendor is used as the baseline; let hih_i be the fraction of input served from cache and γi\gamma_i the cache-read multiplier; and let ρi\rho_i be the ratio of total output tokens generated, visible answer plus hidden reasoning, to the visible answer alone. A workload’s realised cost per completed task…

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Learn the underlying idea

Addition combines quantities; subtraction measures the signed difference between them. Parentheses show what is combined before the rest of the expression is evaluated.

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Sources cited in the article section

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