An analysis of LLM agent costs reveals that expenses are primarily driven by the amount of context remembered rather than the output generated. The author found that while models like GPT-4, Claude, and Gemini have no inherent memory between calls, requiring the entire conversation history to be resent, prompt caching mitigates but does not eliminate this cost. This leads to context read per turn increasing significantly as a session progresses, making longer sessions disproportionately more expensive than initially theorized. AI
IMPACT Understanding context window costs is crucial for optimizing LLM agent development and deployment.
RANK_REASON Analysis of LLM agent costs and memory mechanisms.
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