bagelhole/devops-security-agent-skills

llm-cost-optimization

Reduce LLM API and infrastructure costs through model selection, prompt caching, batching, caching, quantization, and self-hosting strategies.

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How to use

  1. Copy the installation command and review the source package before installing it in your own agent environment.
  2. Check the source document for required tools, credentials and supported hosts.
  3. Describe your input and desired deliverable; review the output against the source material.
npx skills add https://github.com/bagelhole/devops-security-agent-skills --skill llm-cost-optimization

Before you start

  • Installation does not include a model subscription, API allowance or permission to access your files.
  • Repository stars and installation counts describe activity, not an independent quality or security test.
Original skill document

Rendered from the source repository. Headings, examples, code, tables, links, and referenced images are preserved.

LLM Cost Optimization

Cut LLM costs by 50–90% with the right combination of caching, model selection, prompt optimization, and self-hosting.

When to Use This Skill

Use this skill when:

  • LLM API spend is growing faster than revenue
  • You need to attribute AI costs to teams, products, or customers
  • Implementing caching to avoid redundant LLM calls
  • Deciding when to switch from API providers to self-hosted models
  • Optimizing prompt length without sacrificing quality

Cost Levers by Impact

StrategyTypical SavingsEffort
Semantic caching20–50%Low
Model right-sizing30–70%Low
Prompt compression10–30%Medium
Provider caching (prompt cache)10–25%Low
Batching offline workloads50% (Batch API)Medium
Self-hosting 7–8B models80–95% at scaleHigh
Quantization30–50% VRAM costMedium

Track Costs First

python
# Use LiteLLM's cost tracking (automatic per-model pricing)
import litellm

response = litellm.completion(
    model="gpt-4o-mini",
    messages=[{"role": "user", "content": "Hello"}],
)
cost = litellm.completion_cost(response)
print(f"Cost: ${cost:.6f}")

# Add custom cost callbacks
def log_cost(kwargs, completion_response, start_time, end_time):
    cost = kwargs.get("response_cost", 0)
    model = kwargs.get("model")
    user = kwargs.get("user")
    # Send to your analytics DB
    db.record_cost(user=user, model=model, cost=cost)

litellm.success_callback = [log_cost]

Model Right-Sizing

python
# Route by task complexity — don't use GPT-4o for everything
def get_model_for_task(task_type: str) -> str:
    routing = {
        "classification":     "gpt-4o-mini",      # ~30× cheaper than gpt-4o
        "summarization":      "gpt-4o-mini",
        "extraction":         "gpt-4o-mini",
        "simple_qa":          "gpt-4o-mini",
        "complex_reasoning":  "gpt-4o",
        "code_generation":    "claude-sonnet-4-6",
        "creative_writing":   "claude-opus-4-6",
    }
    return routing.get(task_type, "gpt-4o-mini")

# Cost comparison (per 1M tokens, 2025 approx.)
# gpt-4o-mini:          input $0.15 / output $0.60
# gpt-4o:               input $2.50 / output $10.00
# claude-sonnet-4-6:    input $3.00 / output $15.00
# llama-3.1-8b (self):  ~$0.05–0.10 all-in (GPU amortized)

Prompt Caching (Provider-Side)

python
# Anthropic — cache long system prompts (saves 90% on cached tokens)
import anthropic

client = anthropic.Anthropic()

response = client.messages.create(
    model="claude-sonnet-4-6",
    max_tokens=1024,
    system=[
        {
            "type": "text",
            "text": "You are a helpful assistant.",
        },
        {
            "type": "text",
            "text": open("large-context.txt").read(),  # large doc
            "cache_control": {"type": "ephemeral"},     # cache this!
        }
    ],
    messages=[{"role": "user", "content": "Summarize the key points."}],
)
# First call: full price. Subsequent calls: 90% discount on cached part.
print(f"Cache read tokens: {response.usage.cache_read_input_tokens}")

# OpenAI — prompt caching is automatic for repeated prefixes >1024 tokens
# No code change needed; check usage.prompt_tokens_details.cached_tokens

Batching with OpenAI Batch API (50% Discount)

python
import json
from openai import OpenAI

client = OpenAI()

# Prepare batch requests
requests = [
    {
        "custom_id": f"task-{i}",
        "method": "POST",
        "url": "/v1/chat/completions",
        "body": {
            "model": "gpt-4o-mini",
            "messages": [{"role": "user", "content": f"Classify: {text}"}],
            "max_tokens": 50,
        }
    }
    for i, text in enumerate(texts)
]

# Write JSONL file
with open("batch.jsonl", "w") as f:
    for req in requests:
        f.write(json.dumps(req) + "\n")

# Upload and create batch
batch_file = client.files.create(file=open("batch.jsonl", "rb"), purpose="batch")
batch = client.batches.create(
    input_file_id=batch_file.id,
    endpoint="/v1/chat/completions",
    completion_window="24h",
)
print(f"Batch ID: {batch.id}")  # poll status with client.batches.retrieve(batch.id)

Semantic Caching

python
import hashlib
import json
import redis
import numpy as np
from sentence_transformers import SentenceTransformer

r = redis.Redis(host="localhost", port=6379)
embed_model = SentenceTransformer("BAAI/bge-small-en-v1.5")

SIMILARITY_THRESHOLD = 0.92
CACHE_TTL = 3600 * 24  # 24 hours

def cached_llm_call(prompt: str, llm_fn) -> str:
    # 1. Exact match (free)
    exact_key = f"exact:{hashlib.sha256(prompt.encode()).hexdigest()}"
    if cached := r.get(exact_key):
        return cached.decode()

    # 2. Semantic match
    query_vec = embed_model.encode(prompt)
    cached_keys = r.keys("sem:*")
    for key in cached_keys:
        data = json.loads(r.get(key))
        similarity = np.dot(query_vec, data["embedding"]) / (
            np.linalg.norm(query_vec) * np.linalg.norm(data["embedding"])
        )
        if similarity >= SIMILARITY_THRESHOLD:
            return data["response"]

    # 3. Cache miss — call LLM
    response = llm_fn(prompt)

    # Store exact match
    r.setex(exact_key, CACHE_TTL, response)

    # Store semantic embedding
    sem_key = f"sem:{hashlib.sha256(prompt.encode()).hexdigest()}"
    r.setex(sem_key, CACHE_TTL, json.dumps({
        "embedding": query_vec.tolist(),
        "response": response,
        "prompt": prompt,
    }))
    return response

Prompt Compression

python
# LLMLingua — compress long prompts by 3–20× with minimal quality loss
from llmlingua import PromptCompressor

compressor = PromptCompressor(
    model_name="microsoft/llmlingua-2-bert-base-multilingual-cased-meetingbank",
    device_map="cpu",
)

compressed = compressor.compress_prompt(
    long_context,
    ratio=0.5,       # keep 50% of tokens
    rank_method="longllmlingua",
)
print(f"Original: {len(long_context.split())} words")
print(f"Compressed: {len(compressed['compressed_prompt'].split())} words")
print(f"Savings: {compressed['saving']}")

Self-Hosting Break-Even Calculator

python
def break_even_analysis(
    monthly_api_spend_usd: float,
    gpu_cost_per_hour_usd: float = 2.50,   # e.g., A10G on AWS
    utilization: float = 0.70,             # 70% GPU utilization
) -> dict:
    monthly_gpu_cost = gpu_cost_per_hour_usd * 24 * 30 * utilization
    break_even = monthly_gpu_cost / monthly_api_spend_usd
    recommendation = (
        "Self-host now — strong ROI" if break_even < 0.5 else
        "Self-host if traffic grows 2×" if break_even < 0.8 else
        "Stick with API — not enough scale yet"
    )
    return {
        "monthly_gpu_cost": f"${monthly_gpu_cost:.0f}",
        "monthly_api_spend": f"${monthly_api_spend_usd:.0f}",
        "gpu_as_pct_of_api": f"{break_even*100:.0f}%",
        "recommendation": recommendation,
    }

# Example: $5k/month on OpenAI, $2.50/hr A10G
print(break_even_analysis(5000))
# → gpu_cost ~$1,260/mo = 25% of API spend → self-host now

Cost Dashboard (Grafana)

python
# Emit cost metrics to Prometheus
from prometheus_client import Counter, Histogram

llm_cost_total = Counter(
    "llm_cost_usd_total",
    "Total LLM spend in USD",
    ["model", "team", "task_type"],
)
llm_tokens_total = Counter(
    "llm_tokens_total",
    "Total tokens used",
    ["model", "token_type"],  # token_type: prompt, completion, cached
)

def track_call(model, team, task_type, response):
    cost = calculate_cost(model, response.usage)
    llm_cost_total.labels(model=model, team=team, task_type=task_type).inc(cost)
    llm_tokens_total.labels(model=model, token_type="prompt").inc(
        response.usage.prompt_tokens)
    llm_tokens_total.labels(model=model, token_type="completion").inc(
        response.usage.completion_tokens)

Best Practices

  • Use gpt-4o-mini or claude-haiku for 80% of tasks — they're 10–30× cheaper.
  • Enable prompt caching for system prompts >1,024 tokens (Anthropic) or >1,024 tokens (OpenAI).
  • Audit your top 5 prompts by token count — compress or cache them.
  • Set hard budget limits with LiteLLM virtual keys before costs spiral.
  • Self-host 7B–8B models when monthly API spend exceeds $2k/month.

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