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prep blog post for AI cost inferencing#542

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ameijer merged 9 commits into
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Jul 21, 2026
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prep blog post for AI cost inferencing#542
ameijer merged 9 commits into
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atm/blog-post

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@ameijer

@ameijer ameijer commented Jul 16, 2026

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a blog post about our ongoing AI costing initiative

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Signed-off-by: Dee Zeis <139172953+dzeiskubecost@users.noreply.github.com>
Signed-off-by: Dee Zeis <139172953+dzeiskubecost@users.noreply.github.com>
Signed-off-by: Dee Zeis <139172953+dzeiskubecost@users.noreply.github.com>
I added an image and made some minor grammar/punctuation edits throughout. 

One call out - at the end we mention a guide that was developed. Is this live online somewhere we can hyperlink to?

Signed-off-by: Dee Zeis <139172953+dzeiskubecost@users.noreply.github.com>

## Where things stand

A proof-of-concept was implemented and tested on a cluster with 109 GPUs and 30 deployed AI models, and the generated metrics were validated.

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Suggested change
A proof-of-concept was implemented and tested on a cluster with 109 GPUs and 30 deployed AI models, and the generated metrics were validated.
** This feature is available in OpenCost 1.121.0!**
A proof-of-concept was implemented and tested on a cluster with 109 GPUs and 30 deployed AI models, and the generated metrics were validated.

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---
slug: opencost-llmd-inference-cost
title: "Clueless About the Cost of AI Model Usage? OpenCost + llm-d = First-of-a-Kind Kubernetes Inference Cost Tracking"

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Suggested change
title: "Clueless About the Cost of AI Model Usage? OpenCost + llm-d = First-of-a-Kind Kubernetes Inference Cost Tracking"
title: "OpenCost 1.121.0: First-of-a-Kind Kubernetes Inference Cost Tracking"

ameijer added 2 commits July 20, 2026 14:15
…into atm/blog-post

* 'atm/blog-post' of github.com:opencost/opencost-website:
  Update index.md
  delete temp
  Blog image upload
  Create temp

# Conflicts:
#	blog/2026-07-01-opencost-llmd-inference-cost/index.md
> **Cost ≠ Price:** SaaS providers may price below cost to gain market share or well above cost for premium models. When comparing self-hosting costs to SaaS, keep this distinction in mind. An enterprise's cost for SaaS inference is the provider's price.

To close this gap, we are integrating [OpenCost](https://opencost.io), a CNCF incubating project, with [llm-d](https://llm-d.ai), a CNCF sandbox project for distributed LLM inference on Kubernetes. This post explains how the integration works, what metrics it produces, and how platform teams can use them to make data-driven decisions.

@simanadler simanadler Jul 21, 2026

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Can we add the following?

Note: vllm users who do not use llm-d can also benefit from these capabilities, since the core metrics used to calculate model and per token costs come from vllm.


The integration uses metrics already present in an llm-d deployment: token throughput from vLLM (`vllm:prompt_tokens_total`, `vllm:generation_tokens_total`), GPU costs from OpenCost's existing allocation engine, and processing-time metrics that support separate cost calculations for input and output tokens.

The result is a new set of inference cost metrics published to Prometheus and available via OpenCost's REST API and MCP server:

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MCP server isn't implemented yet


Kubernetes resource allocation has always had an efficiency problem. Teams size CPU and memory requests based on estimates, which often leads to overprovisioned workloads and silently accumulating idle capacity. With GPUs, the cost of getting this wrong is an order of magnitude higher. Measurement tooling hasn't kept up, making it difficult to measure efficiency or ROI.

A GPU actively serving a loaded LLM is expensive. A GPU sitting idle with a model loaded but no requests arriving is equally expensive, because the model's weights occupy VRAM whether or not inference is happening. For example, a low-traffic model might spend 95% of its time in this "warm but idle" state, burning through your budget while contributing zero productive tokens.

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In addition, KV cache hits directly impact the cost of processing input tokens and thus must be measured as well.

@ameijer
ameijer merged commit 6bdcb9e into main Jul 21, 2026
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@ameijer
ameijer deleted the atm/blog-post branch July 21, 2026 14:54
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4 participants