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LLM Cost Engineering

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1 · Spending less on the same work

1Token economics of an agent fleet
2Prompt caching as system design
3Trimming and compacting context
Exercise answers
- Answer: Simulate context policies with and without caching
- Answer: Test what compaction forgets
4Batch, flex and fast tiers

2 · Changing the model, and governing the spend

5Cost-quality curves, routing and cascades
6Distilling into small models
7Self-hosting break-even
8Attribution, budgets and alerts

CapstoneCost-engineer an agent pipeline Reference implementation

Answers Lesson 3: Trimming and compacting context

Step-by-step answer

Stretch 45–60 min7 steps

Test what compaction forgets

Back to the exercise

Previous answerSimulate context policies with and without caching Next answer Build a resumable batch extraction job

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