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Published equation contexts

Cost(ni,no)={ni piL+no poL,ni<Tni piH+no poH,ni≥T\text{Cost}(n_i, n_o) = \begin{cases} n_i\, p_i^{L} + n_o\, p_o^{L}, & n_i < T \\ n_i\, p_i^{H} + n_o\, p_o^{H}, & n_i \geq T \end{cases}

Why this formula appears here

The pricing structure has a feature worth building a mental model around before it costs you money in production: it is not a marginal rate that blends smoothly as a request grows, it is a cliff. Every model’s documented price list carries two tiers — one for requests under 200,000 tokens, and a materially higher one, roughly double across the board, once a request reaches that threshold — and the higher rate applies to the entire request, not just the tokens past the line [ 1 ] . Written as a cost function of input tokens nin_i and output tokens non_o against a threshold T = 200{,}000 , with low-tier prices piLp_i^{L}, poLp_o^{L} and high-tier prices piHp_i^{H}, poHp_o^{H} : Cost(ni,no)={ni piL+no poL,ni<Tni piH+no poH,ni≥T\text{Cost}(n_i, n_o) = \begin{cases} n_i\, p_i^{L} + n_o\, p_o^{L}, & n_i < T \\ n_i\, p_i^{H} + n_o\, p_o^{H}, & n_i \geq T \end{cases}. For…

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nin_i

Symbol n_i

nin_i is an argument of the function-like quantity on the left; its role is set by that function’s stated inputs.

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non_o

Symbol n_o

non_o is an argument of the function-like quantity on the left; its role is set by that function’s stated inputs.

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Published contexts (1)

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Cost(ni,no)={ni piL+no poL,ni<Tni piH+no poH,ni≥T\text{Cost}(n_i, n_o) = \begin{cases} n_i\, p_i^{L} + n_o\, p_o^{L}, & n_i < T \\ n_i\, p_i^{H} + n_o\, p_o^{H}, & n_i \geq T \end{cases}

Equation 6 · AI Industry

Actually Building with the Grok API

This equation states a bound: one expression must stay on the indicated side of the other under the article’s assumptions.

The pricing structure has a feature worth building a mental model around before it costs you money in production: it is not a marginal rate that blends smoothly as a request grows, it is a cliff. Every model’s documented price list carries two tiers — one for requests under 200,000 tokens, and a materially higher one, roughly double across the board, once a request reaches that threshold — and the higher rate applies to the entire request, not just the tokens past the line [ 1 ] . Written as a cost function of input tokens nin_i and output tokens non_o against a threshold T = 200{,}000 , with low-tier prices piLp_i^{L}, poLp_o^{L} and high-tier prices piHp_i^{H}, poHp_o^{H} : Cost(ni,no)={ni piL+no poL,ni<Tni piH+no poH,ni≥T\text{Cost}(n_i, n_o) = \begin{cases} n_i\, p_i^{L} + n_o\, p_o^{L}, & n_i < T \\ n_i\, p_i^{H} + n_o\, p_o^{H}, & n_i \geq T \end{cases}. For…

Meanings in this article

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