February 5, 2025
The Complete Guide to OpenAI Token Optimization
7 min read
OpenAI charges per token, and tokens add up fast. A single API call can consume thousands of tokens, especially with long context windows.
We've reduced our OpenAI costs by 40% through systematic optimization without sacrificing quality.
Key strategies
- Prompt compression: Remove unnecessary context and use concise instructions.
- Model selection: Use GPT-3.5-turbo for simple tasks, GPT-4 only when needed.
- Response caching: Cache common queries to avoid redundant API calls.
- Streaming optimization: Stop generation early when the answer is clear.
Sonar tracks token usage per endpoint, model, and team so you can identify optimization opportunities instantly.