Eric Siu breaks down AI token routing and cost efficiency. Basic AI tasks cost far less than frontier models, but most companies aren't optimizing which model handles which job. Ramp CEO Eric Gleiman explains how smarter routing saves serious money on enterprise AI spending.
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So if you look at what the founder of Ramp said, so he said this: basic AI tasks are 700 times cheaper, whereas frontier AI tasks are 300 times more expensive. So this is Eric Gleiman, the CEO of Ramp. So when you look at this right here, right, you look at the routing opportunity. So talking about token routing over here. So if you're using ChatGPT-4 level intelligence, again, if I'm like cleaning your toilet or whatever, I don't need the best intelligence, right? So you get lower intelligence, same task, smarter routing. It's 700 times more cheaper per task. So you need to have good token routing. And I'm in some I'm having these CEO chats right now where some of these people work at large enterprise companies and they're like, yeah, this is a major point of contention right now. People come to us saying, hey, how can you help us with token optimization now?