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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

  1. Prompt compression: Remove unnecessary context and use concise instructions.
  2. Model selection: Use GPT-3.5-turbo for simple tasks, GPT-4 only when needed.
  3. Response caching: Cache common queries to avoid redundant API calls.
  4. 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.