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March 10, 2025

GPT-4 vs GPT-3.5: When the 10x Cost is Worth It

6 min read

GPT-4 is significantly more capable than GPT-3.5, but it costs 10x more per token. Most teams default to GPT-4 for everything, burning money on simple tasks.

We've reduced our AI costs by 60% by using GPT-3.5 for 80% of requests and GPT-4 only when necessary.

When to use each model

  • GPT-3.5-turbo: Simple Q&A, text completion, basic classification, summarization.
  • GPT-4: Complex reasoning, code generation, creative writing, multi-step tasks.

Sonar tracks costs per model and endpoint, so you can see exactly where GPT-4 is worth the premium and where GPT-3.5 is sufficient.