Topic

Cost Management

All digests tagged Cost Management

FinOps for AI Agents: Who Spent All the Tokens? — Tisha Chawla & Susheem Koul, Microsoft thumbnail

· 21:24

FinOps for AI Agents: Who Spent All the Tokens? — Tisha Chawla & Susheem Koul, Microsoft

The talk introduces TokenOps, a control plane designed to shift AI agent development from 'token maxing' (spending tokens) to 'value maxing' (maximizing value per token). It addresses the critical gap in current systems: the lack of cost governance between code execution and model calls. TokenOps operates out-of-band at the entire agent run level, utilizing a `boundary annotation` and `governor node` to implement sophisticated policies that can 'steer' an agent's behavior (e.g., instructing it to be more succinct) before hitting a budget cap, thereby preventing costly failures.

Key takeaways

  1. Shift from Token Maxing to Value Maxing

    The industry needs to move beyond simply spending tokens and focus on ensuring that every token spent has measurable business value. This requires proper attribution of costs back to specific agent runs.

  2. Run-Level Cost Control is the Missing Piece 2:38

    Existing tools (like model gateways) only control cost at the request level. TokenOps provides governance at the entire agent run layer, allowing control over complex loops and context growth.

  3. Steering vs. Halting

    Instead of simply halting an agent when a budget is exceeded (a circuit breaker), the 'steer' action uses a cost guard to predict overruns and injects instructions into the system prompt, guiding the agent toward more efficient outputs.

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Keep model costs in check with LangSmith LLM Gateway thumbnail

· 4:33

Keep model costs in check with LangSmith LLM Gateway

The LangSmith LLM Gateway solves critical governance and cost control issues arising from decentralized usage of multiple Large Language Models (LLMs) across an organization. By acting as a single, centralized endpoint between development teams and various model providers (e.g., OpenAI, Anthropic), the gateway enforces real-time spend limits and rate controls before requests are processed. This allows organizations to maintain a live audit trail of token usage, cost, and model access without requiring code changes in existing applications.

Key takeaways

  1. Centralized Cost Governance 0:15

    The Gateway provides a single point of control for enforcing spend limits and rate limits across all connected LLM providers, preventing unexpected cost spikes that occur when multiple teams use various keys and models.

  2. Non-Invasive Integration 0:40

    Implementing the gateway only requires updating the base URL and API key within existing SDKs (Python, TypeScript), meaning developers do not need to modify their application's core request or response handling logic.

  3. Granular Control and Auditability 1:05

    Cost controls can be applied globally for the organization, or granularly by individual API key, user, or workspace. This provides a live audit trail detailing which model, key, and number of tokens were used, replacing reliance on provider invoices.

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Build Hour: Valuemaxxing with GPT-5.6 thumbnail

· 54:33

Build Hour: Valuemaxxing with GPT-5.6

The session provides a deep dive into 'Value Maxxing' with GPT-5.6, shifting focus from merely maximizing token usage to optimizing AI agents for concrete business outcomes and cost efficiency. Key strategies include selecting the optimal model (Sol, Terra, Luna) based on workload needs, implementing advanced API features like programmatic tool calling and prompt caching, and structuring agent workflows to minimize redundant context processing.

Key takeaways

  1. Shift from Token Maxxing to Value Maxxing 2:30

    Progress should be measured by the value generated (e.g., time saved, quality improved), not just the number of tokens consumed. This requires defining clear outcomes and measurable 'good' for AI agents (evals).

  2. Model Selection Strategy 4:09

    The GPT-3.5 family includes Sol (flagship/complex tasks), Terra (balanced intelligence/cost/latency), and Luna (high-volume, cost/latency sensitive) to optimize for specific workloads.

  3. Optimizing Agent Workflows with Codex 5:28

    For day-to-day coding, starting with `GPT-5.6 Soul` on medium reasoning is often sufficient. Developers can also trade tokens for time using Fast mode or utilize Chronicle to build task memory.

  4. Advanced API Techniques (Harness Optimization) 6:51

    Implement programmatic tool calling (using a JavaScript sandbox) and prompt caching to significantly reduce input token costs and processing time. Persistent reasoning and compaction also boost performance and cache efficiency.

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