TokenSkim

RAG cost optimization: cut retrieval-augmented LLM spend

RAG concentrates cost in the input: you prepend retrieved context to every query. That makes it one of the most expensive — and most optimizable — LLM patterns.

Cache the parts that repeat

The system prompt and any always-present context (schema, instructions) are identical across queries. Caching that prefix removes it from the per-query bill.

Retrieve less, more precisely

Top-k that's too large is pure waste: you pay input price for chunks the model ignores. Tighter retrieval and reranking cut tokens and often improve answers.

Deduplicate repeated questions

In production, a meaningful share of RAG queries are near-duplicates on the same document. Semantic response caching avoids paying to generate identical answers twice.

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