How AI Providers are Calculating charges

Who are AI Providers?

"AI Providers" is a broad term encompassing a wide range of entities involved in the development, deployment, and maintenance of artificial intelligence technologies. 

Tech Gaints Like Google, Amazon, Meta have their own AI and few open source and researches like OpenAI provide a AI capabilites. 

Lets have a look at how these AI Providers charge


OpenAI combines the total tokens used for both requests (prompts) and responses to calculate the overall cost.

What is a token?

Tokens are the basic unit that OpenAI models (GPT Models) use to compute the length of a text. They are groups of characters, which sometimes align with words, but not always. In particular, it depends on the number of characters and includes punctuation signs or emojis.

Please go through the official OpenAI Tokenizer tool here 

Models and costs

Google (PaLM, Gemini)

Google's generative AI charges every 1,000 characters of input (prompt) and every 1,000 characters of output (response).

Characters are counted by UTF-8 code points and white space is excluded from the count. At the end of each billing cycle, fractions of one cent ($0.01) are rounded to one cent.

Models and Costs