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.

AI tool costs Essay

A receipt for every agent run

Dashboards tell you what the month cost. A receipt tells you what this run cost, which provider earned it, and what the same result would have cost at rack rate.

AI tool costs Playbook

The hidden cost of retries

Every retry is a repurchase at full price with worse odds than the first attempt. Here's the playbook: budgets per task, hard no-retry rules, and fallbacks.