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The model is cheaper than the deployment

Yethikrishna ROriginal on Threads

the model is cheaper than the deployment: llm inference eats 70 to 90 percent of enterprise ai operational cost, api prices dropped about 80 percent since early 2025, and deepseek charges 14 cents a million input tokens while a frontier flagship runs hundreds of times more. renting the model can cost 50 times less than renting the gpu.

the math is deciding which models get used.

Context

InfotechLead reported on Sep 3, 2026 that DeepSeek V4 Flash costs about 0.14 dollars per million input tokens against 5 dollars for OpenAI's GPT-5.5. Presenc AI says frontier token pricing fell about 50 times from 2023 to mid-2026.

Presenc AI also says self-hosted open-weight inference can reach about 0.05 dollars per million input tokens at sufficient throughput.

How it compares

The 14 cents per million input tokens at DeepSeek matches the sources. Inference being 70 to 90 percent of enterprise AI operating cost, API prices falling about 80 percent since early 2025, and renting the model costing 50 times less than renting the GPU were not seen in the sources read, so unsupported here, not refuted. Presenc's 50 times is a longer window, from 2023.

Related work

Watch next

  • Find a source for the inference share of AI operating cost.

Sources

  1. InfotechLead, Sep 3, 2026infotechlead.com
  2. Presenc AI, May 22, 2026presenc.ai
  3. BizScoreAI, May 25, 2026bizscoreai.com

Provenance

The note above is reproduced unedited from the original post, first published on Threads on 2 October 2026 at 19:45 IST. Sources are the papers and datasets the note draws on.

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