https://www.tensoreconomics.com/p/llm-inference-economics-from-first
LLM Inference Economics from First Principles
Piotr Mazurek, Felix Gabriel
May 14, 2025
“The main product LLM companies offer these days is access to their models via an API, and the key question that will determine the profitability they can enjoy is the inference cost structure… we will explain where the cost of serving/hosting LLMs comes from…”