Glossary category
Performance and cost
Speed, quality and what you pay for.
24 terms
A standard test used to score models against each other, useful for shortlisting and unreliable as a promise about your own work.
The wait between sending a request and getting the answer.
Running a trained model to produce an answer, as opposed to training it in the first place.
What it costs to run a model each time it answers, which is why heavy use is metered and the strongest models are rationed.
A cap on how many requests you may send in a given period, which protects the service and shapes how fast an automated job can run.
The ceiling a plan puts on how much you can do in a day, week or month before you are slowed, switched to a weaker model, or stopped.
Paying for what you actually use rather than a flat subscription, which suits uneven demand and makes forecasting harder.
A free tier is a usable product at no cost, with limits such as message caps or slower models; freemium describes the business model built around it, where the free version exists to sell the paid one.
- Prompt caching
Reusing the work already done on a repeated piece of context, which cuts both cost and wait when the same material is sent often.
- Token pricing
Charging by the amount of text going in and coming out rather than per person, which makes long documents cost more than short questions.
- Credits
A prepaid unit a vendor charges against, worth checking carefully because one credit rarely means the same thing across two products.
- Seat based pricing
Paying a fixed amount per person per month, predictable to budget for and wasteful when only some of those people use it.
- Usage based pricing
Paying for what you actually consume, which rewards light use and can surprise you in a busy month without a cap in place.
- Token allowance
The amount of use a plan includes before extra charges begin, the number worth finding before comparing two headline prices.
- Service level agreement (SLA)
A contractual promise about availability and response times, with agreed consequences, and the thing to ask for before depending on a tool.
- Model routing
Sending each request to whichever model suits it, keeping the expensive one for the hard cases and something cheaper for the rest.
- Inference endpoint
The address your software sends requests to for a particular model, which is what you are really buying when you buy access.
- Model hosting
Running a model on infrastructure someone provides, whether the model maker's, a cloud vendor's or your own.
- AI gateway
A single point every AI request passes through, so keys, spending limits, logging and model choice are managed in one place.
- Throughput
How much work a system gets through in a given time, the number that matters for bulk jobs where a single reply's speed does not.
- Cost per task
What one completed piece of work costs rather than what one person or one month costs, the unit that makes AI spending comparable to labour.
- Context pricing
The reason a long document costs more to ask about than a short one, because everything you send is charged for on the way in.
- Concurrency
How many requests a plan lets you run at the same time, usually the first limit a team meets when it moves past piloting.
- Overage
What you are charged once an included allowance runs out, and the commonest unpleasant surprise on an AI invoice.
Last checked July 2026