# Cost Analysis

### 1. Dimensions of Cost

* **CapEx (hardware acquisition):**
  * GPUs (H100/MI300X): very high upfront, scarce supply, long lead times.
  * CPUs (Xeon/EPYC/Graviton): abundant, cheaper per socket, widely available across cloud and bare-metal.
* **OpEx (operational cost):**
  * **Power & cooling:** GPUs draw 350–700W per card; CPUs typically 100–300W per socket.
  * **Licensing & infra:** GPU clouds often include premium pricing; CPU instances are commodity-priced.
* **Developer/engineering cost:**
  * GPUs need specialized frameworks (CUDA, ROCm, Triton, paged attention).
  * CPUs leverage mainstream libraries (PyTorch + oneDNN, ONNX Runtime, OpenVINO).

***

### 2. Cost per Token (Illustrative)

| Workload                 | Hardware                 | Tokens/sec    | Instance Price (cloud est.) | $ per 1M Tokens | Notes                                      |
| ------------------------ | ------------------------ | ------------- | --------------------------- | --------------- | ------------------------------------------ |
| Small LLM (3B, INT8)     | Xeon AMX (m7i.xlarge)    | \~80–100      | \~$0.20/hr                  | \~$0.0007       | Cheap, CPU competitive                     |
| Small LLM (3B, INT8)     | A10 GPU (g5.xlarge)      | \~400–500     | \~$1.00/hr                  | \~$0.0005       | GPU slightly better but higher hourly rate |
| Mid LLM (13B, INT8)      | Xeon AMX (m7i.4xlarge)   | \~50          | \~$0.80/hr                  | \~$0.003–0.004  | CPUs slow down, cost rises                 |
| Mid LLM (13B, INT8/BF16) | A100 (p4d.24xlarge)      | \~1,500+      | \~$32/hr                    | \~$0.001–0.002  | GPUs more efficient at this scale          |
| Large LLM (70B, BF16)    | Xeon AMX (not practical) | <10           | \~$3/hr+                    | $0.03–0.05      | Not cost-effective                         |
| Large LLM (70B, BF16)    | H100 (p5.48xlarge)       | \~3,000–4,000 | \~$98/hr                    | \~$0.002–0.003  | Best option for massive models             |

*(Numbers are ballpark, based on AWS public pricing + reported throughput; adjust with your own benchmarks.)*

***

### 3. When CPUs Are More Cost-Effective

* **Quantized small/mid models (≤13B)**
* **Bursty/low-QPS traffic** (agents, RAG, edge workloads)
* **Tokenization, embedding, pre/post-processing** tasks
* **Commodity cloud or on-prem deployments** where GPUs are scarce/overpriced

***

### 4. When GPUs Win on Cost

* **Large models (≥30–70B)** where CPU throughput collapses
* **High-concurrency workloads** where GPU batching drives cost per token down
* **Training or fine-tuning** (CPUs not viable)

***

### 5. Strategic Takeaway

* **Cost efficiency is workload-dependent.**
  * CPUs with AMX/AVX/SME are cheapest for **smaller quantized models, agents, and spiky traffic.**
  * GPUs dominate cost-per-token for **large, steady, chat/research workloads.**
* The most economical architecture is **heterogeneous**:
  * **Route agents & utilities → CPUs**
  * **Route long-form inference → GPUs**


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