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LLM Token Arbitrage & Cost Scaling.

Models the hyper-deflationary economics of LLM inference, calculating the arbitrage opportunity between high-cost frontier models and low-cost local models via prompt-caching and knowledge distillation.

## The Intelligence Arbitrage

Intelligence is becoming a commodity with a price that drops 90% every 12 months. Developers who build on expensive APIs without a 'Distillation Strategy' are effectively burning venture capital on a legacy cost structure.

### FAQ

**Q: What is 'Token Arbitrage'?**
A: It is the process of using a $15/1M token model to generate high-quality synthetic data, which is then used to fine-tune a $0.15/1M token model. Once the smaller model reaches 90% of the frontier model's performance on your specific task, you switch your production traffic. This tool models that 100x cost reduction and the resulting margin expansion. If your unit economics don't work at frontier prices, you must arbitrage the intelligence down to the edge.