this post was submitted on 23 Aug 2025
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That's not even correct. Grok costs $15/MM output tokens and $3/MM input tokens. To generate a million words (without reasoning, although I don't know if grok-4 is a CoT model) you're looking at around $30-$35 (assuming 2 tokens per word)^[https://docs.x.ai/docs/models] if you want to search with that, it's 2.5¢ per query. I can't believe people pay 2.5¢ for an API call.
For reference, DeepSeek costs $1.68 per million tokens (for both chat and reasoner starting this September, which is nice).
And not to forget that these are highly discounted prices. The real costs are much, much higher.
Yeah all of these companies are spending vastly more than the revenue they pull in, it’s like a 10x discrepancy between actual cost and what they’re charging to try to sink competitors rn. And it’s only going up