How We Reduced AI Costs by 70% with Multi-Provider Routing
Engineering8 min read

How We Reduced AI Costs by 70% with Multi-Provider Routing

Learn how B2ALABS® AI Gateway intelligently routes requests across OpenAI, Claude, and Gemini to minimize costs while maintaining quality.

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The Cost Problem with AI Applications

Running AI applications at scale quickly becomes expensive. A single OpenAI GPT-5 API call can cost $0.03 per 1K tokens for input and $0.06 per 1K tokens for output. For a SaaS chatbot handling 100,000 requests per day, this translates to $6,000+ per month in API costs alone.

Enter Multi-Provider Routing

B2ALABS® AI Gateway solves this by intelligently routing requests across multiple LLM providers based on cost, performance, and availability. Here's how it works:

1. Real-Time Cost Calculation

Before sending a request, B2ALABS® estimates the token count and calculates the cost across all available providers:

OpenAI GPT-5:        $0.005 per request
Anthropic Claude:    $0.004 per request
Google Gemini 2.5 Pro:   $0.0015 per request
Google Gemini 2.5 Flash: $0.0003 per request (94% cheaper!)

2. Intelligent Routing Strategy

The gateway selects the cheapest healthy provider automatically. For the example above, routing to Gemini 2.5 Flash saves $0.0047 per request. At 100K requests/day, that's $470/day or $14,100/month in savings.

3. Automatic Failover

If the cheapest provider is down or rate-limited, the gateway automatically fails over to the next best option. No manual intervention required.

Real-World Case Study

One of our customers, a SaaS company with a customer support chatbot, implemented B2ALABS® and achieved the following results:

  • Before: 100% traffic to GPT-3.5-turbo = $6,000/month
  • After: 60% to Gemini 2.5 Flash, 40% to GPT-3.5-turbo = $1,800/month
  • Savings: $4,200/month (70%)
  • Annual savings: $50,400

Semantic Caching: The Ultimate Optimization

Beyond smart routing, B2ALABS® offers semantic caching. When a similar question is asked, the gateway returns the cached response instantly—no API call needed.

How Semantic Caching Works

  1. Generate an embedding (384-dimensional vector) for each prompt
  2. Calculate cosine similarity with cached prompts
  3. If similarity exceeds 95%, return cached response
  4. Cache hit = 100% cost savings + 95% latency reduction

Our customers see an average cache hit rate of 34%, which means one-third of all requests are essentially free.

Getting Started

Implementing cost optimization with B2ALABS® takes less than 10 minutes:

  1. Add API keys for multiple providers (OpenAI, Gemini, Claude, Mistral)
  2. Enable semantic caching with Redis
  3. Configure routing strategy (default: lowest_cost)
  4. Monitor savings in Grafana dashboard
docker-compose up -d
curl http://localhost:8080/health
# Ready to save money!

Monitoring Your Savings

B2ALABS® includes a Grafana dashboard showing:

  • Cost per request by provider
  • Total savings vs. single-provider
  • Cache hit rate
  • Request distribution
  • Cost trends over time

Conclusion

With B2ALABS® AI Gateway, you can reduce your AI infrastructure costs by 40-75% without changing a single line of application code. Multi-provider routing and semantic caching work together to minimize expenses while maintaining or even improving performance.

Ready to start saving? Check out our Getting Started guide or Cost Optimization course.

Tags:#cost-optimization#ai-gateway#llm#case-study
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Trademark Acknowledgments:

OpenAI®, GPT®, GPT-4®, GPT-5®, and ChatGPT® are trademarks of OpenAI, Inc. • Claude® and Anthropic® are trademarks of Anthropic, PBC. • Gemini™, Google™, and PaLM® are trademarks of Google LLC. • Meta®, Llama™, and Meta Llama™ are trademarks of Meta Platforms, Inc. • Mistral AI® is a trademark of Mistral AI. • Cohere® is a trademark of Cohere Inc. • Microsoft®, Azure®, and Azure OpenAI® are trademarks of Microsoft Corporation. • Amazon Web Services®, AWS®, and AWS Bedrock® are trademarks of Amazon.com, Inc. • Together AI™, Replicate®, and Perplexity® are trademarks of their respective owners. • All trademarks and registered trademarks are the property of their respective owners. B2ALABS® is not affiliated with, endorsed by, or sponsored by any of the aforementioned companies. Provider logos and names are used for identification purposes only under fair use for technical documentation and integration compatibility information.

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