Cost vs Capability

What it is

Cost vs capability is the trade-off between AI model power and expense. More capable models (larger, more sophisticated) cost more per token or have tighter usage limits. Faster, cheaper models may be sufficient for simple tasks but struggle with complex ones.

Why it matters

Matching model capability to task complexity saves money and often improves speed. Use powerful models for tasks that need them—complex reasoning, nuanced writing, difficult code. Use lighter models for simple questions, formatting, or basic tasks. This becomes more important at scale.