RAG Is Burning Money — I Built a Cost Control Layer to Fix It
Most RAG systems are optimized for answer quality, not cost—and that blind spot gets expensive fast. In this article, I break down a production-ready cost control layer combining semantic caching, query routing, token budgeting, and circuit breaking, achieving an 85% reduction in LLM costs without s

Most RAG systems are optimized for answer quality, not cost—and that blind spot gets expensive fast. In this article, I break down a production-ready cost control layer combining semantic caching, query routing, token budgeting, and circuit breaking, achieving an 85% reduction in LLM costs without sacrificing answer quality. The post RAG Is Burning Money — I Built a Cost Control Layer to Fix It appeared first on Towards Data Science.
Key Takeaways
- •Most RAG systems are optimized for answer quality, not cost—and that blind spot gets expensive fast
- •This story was reported by Towards Data Science, covering developments in the newsletter space.
- •AI advancements continue to reshape industries — read the full article on Towards Data Science for complete coverage.
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