frugal

AI tool-call costs and unit economics

Model prices dropped an order of magnitude. Tool prices didn't. The same web search still costs anywhere from $0 to $0.005 per call depending on who answers it, and for search-heavy agents that spread is most of the bill.

These posts put numbers on the problem: rack-rate comparisons, cost observability, retry overhead, and the unit economics of shipping a product where every user action fans out into tool calls.