Model routing is a fix for AI overspending. That's a problem for OpenAI and Anthropic
- Jun 9
- 1 min read
CNBC — The pressure behind the shift is a cost curve that has surprised even the biggest tech companies. Jeetu Patel, chief product officer at Cisco, laid out the math. At roughly $200 of token usage per employee per week, that's about $10,000 a year per person. With 90,000 employees, a company is looking at $900 million annually. Tokens are blocks of data that models use to generate information. Usage is billed by the number of tokens processed.
Patel said Cisco came in well over its own budget and has had to adjust, with 30,000 engineers now building products written largely with AI. Cisco has reallocated resources, prioritizing tokens over other spending.
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