← Back to article

Equation 19 · Comparing Frontier Model Pricing Without Comparing Apples to Oranges

What does this equation mean?

κi=ρi=1\kappa_i = \rho_i = 1

Read the formula alongside the article passage below. Each part has a deeper page with its role in the equation, the supporting passage and nearby citations.

Inputs and operationsrho_i = 1
Result or conditionkappa_i
How to read the two sides of this formula. Follow the article passage for the meaning of each quantity.

This equation states an equality: the expressions on both sides have the same value under the article’s assumptions. Read the equation part by part below; each part has a contextual explanation and a link to its mathematical background.

Read it piece by piece

κi\kappa_i

Symbol kappa_i

kappaia_i is part of the quantity the equation computes from the expression on the right.

Understand this part →

ρi\rho_i

Symbol rho_i

all equal to each other and to 1 across every vendor in the comparison.

Understand this part →

=

=

The expressions on both sides represent the same quantity under the stated assumptions.

Understand this part →

See an illustrated explanation →
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.

Understand this part →

How to interpret it

Read it with the definitions, units, and assumptions supplied by the article.

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…
Read the full surrounding passage
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.

Read the equation in its article →

Sources cited in the article section

These citations give research context. Read each source to check which claims it supports.

Return to Comparing Frontier Model Pricing Without Comparing Apples to Oranges

See this formula across 1 published context →

Browse the mathematical compendium →