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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

See Also