AI engineering

Stage 1 · Lesson 8 of 8

Choosing a model: quality, cost, latency

How LLMs work: tokens and context

There is no best model, only the cheapest and fastest one that is good enough for your task. means comparing candidates on three things together. Quality: how well it does on your own examples.

Cost: the at the volume you expect. Latency, meaning waiting time: both (when text starts to appear) and total time. Public are a starting point, but they measure other people's tasks.

Start with a strong model to prove the feature can work. Then try smaller ones on the same test inputs, and step down while quality holds. Also weigh size, support for tool calling, the provider's data handling terms, and whether you need a model you can run yourself.

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