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Equation 16 · Comparing Frontier Model Pricing Without Comparing Apples to Oranges

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γi\gamma_i

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the cache-read multiplier. Read the equation part by part below; each part has a contextual explanation and a link to its mathematical background.

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γi\gamma_i

Symbol gamma_i

the cache-read multiplier.

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subscript

subscript

The lower label selects a particular version, component, or indexed member of the quantity. For example, x₀ and xₜ can be values at different positions.

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What the article says around this equation

Reading piinp^{\text{in}}_i and pioutp^{\text{out}}_i off a rate card and comparing them directly across vendors is equivalent to assuming κi\kappa_i , γi\gamma_i , and ρi\rho_i are all equal to each other and to 1 across every vendor in the comparison. This article has just shown that one of those three, γi\gamma_i , genuinely does converge close to 0.1 across all three companies’ published cards — the one term a naive comparison happens to get right by accident. The other two do not converge, are not published as clean multipliers by any vendor, and vary by content type and by task in ways that only measurement on the caller’s own workload can pin down. A price comparison that reports piinp^{\text{in}}_i and…
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Reading piinp^{\text{in}}_i and pioutp^{\text{out}}_i off a rate card and comparing them directly across vendors is equivalent to assuming κi\kappa_i , γi\gamma_i , and ρi\rho_i are all equal to each other and to 1 across every vendor in the comparison. This article has just shown that one of those three, γi\gamma_i , genuinely does converge close to 0.1 across all three companies’ published cards — the one term a naive comparison happens to get right by accident. The other two do not converge, are not published as clean multipliers by any vendor, and vary by content type and by task in ways that only measurement on the caller’s own workload can pin down. A price comparison that reports piinp^{\text{in}}_i and pioutp^{\text{out}}_i alone has silently set κi\kappa_i = ρi\rho_i = 1 for every vendor, an assumption none of the sourcing above supports.

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