Patel explains reasoning models increase cost ten times by outputting 11,000 tokens versus 1,000 for same query
“I outputted a thousand tokens to I outputted 11,000 tokens. I've 10x'd my spend to generate no. Not the same thing. Right? It's higher quality.”
Patel calculates reasoning models cost fifty times more per query due to batch size and token generation combined
“Cost increase for a single token to be generated is four to five x, but then I'm generating 10 x as many tokens.”