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Posted on • Originally published at aitechconnect.in

The Cache, Route, Compress Playbook: Cutting LLM Costs 70–90% in Production

Originally published on AI Tech Connect.

Why most teams overspend 3–5× on LLM calls The uncomfortable truth about most production LLM bills is that they are several times larger than they need to be, and the people paying them often cannot say why. As of June 2026, enterprise spend on model APIs has become a serious line item — it passed $8.4 billion across 2025 and is projected higher through 2026 — yet most teams still have no systematic cost strategy. They picked a strong default model during the prototype, wired it into every code path, and shipped. The bill that followed was treated as the cost of doing business rather than as something an engineer could halve in an afternoon. The overspend comes from three habits, and they map cleanly onto the three pillars of this playbook. The first is resending the same context on every…


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