Reducing LLM API Cost Using Caching and Routing
Problem
High LLM API costs due to repeated and redundant requests.
Architecture
- Caching layer for prompt/response pairs
- Model router to select optimal LLM
- Usage analytics for cost tracking
Solution
- Implemented Redis cache for frequent queries
- Added routing logic to use lower-cost models for non-critical requests
- Monitored API usage and costs
Tools Used
- Redis
- LangChain
- OpenAI API
Results
- 40% reduction in API costs
- Improved response times
- Better cost visibility