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Segment

Inference and serving: what it costs to answer

Training is a capital project. Serving is an operating cost that never stops, and it is where most of the engineering that determines unit economics happens. This branch covers the techniques that decide what a request costs and how quickly it comes back.

In one sentence

Inference and serving is the runtime layer that executes trained models against live requests — batching, caching, compressing and routing work to keep latency acceptable and cost per token low.

Generating an answer has two phases with opposite characteristics. Reading the prompt processes all its tokens at once and is arithmetic-heavy. Generating the response produces one token at a time, each requiring a pass over the model's weights, and is bandwidth-heavy. Nearly every serving technique targets one phase or the other, and confusing them leads to optimising the wrong thing.

The result is that cost per token is a systems outcome, not a hardware specification. Two operators with the same accelerators can differ by a large factor on cost per million tokens, depending on batching, cache management, precision and routing.

How this breaks down

Split by the lever being pulled — scheduling, precision, memory, or what the model is given to read.

What this depends on

Technology dependencies are solved by engineering; supply dependencies are solved by building something, which takes years.

  • Technology

    Accelerators with high memory bandwidth

    Token generation is bandwidth-bound; the hardware ceiling is set there.

    AI memory
  • Technology

    A trained model

    Serving inherits whatever the training and post-training stages produced, including their failure modes.

    Model architecture
  • Technology

    Cluster scheduling and autoscaling

    Serving capacity is allocated, drained and re-allocated continuously against traffic that moves by the hour. Without that layer an operator sizes for peak and pays for it all day.

    Cluster orchestration

What depends on this

Other pages in this map that name Inference and serving as something they cannot do without.

Companies across Inference and serving

Every company named on a step below this page, ordered by how many of those steps it appears at. Compiled from the pages themselves rather than written separately, so the two cannot disagree. Not a ranking and not a recommendation.

21 more companies appear at a single step each; they are named on the pages for those steps.

How these pages are written

Each page explains one technology in plain language, states what it depends on, and names companies by what they supply at that step. Company roles are described qualitatively and deliberately carry no market shares, revenue figures or rankings — those change faster than an explainer can, and a stale number is worse than none. Ticker links point at company pages on this site and are provided for reference only.

Nothing here is investment advice, a recommendation, or a forecast. A company named on a page about a technology is not thereby a good investment, and the chokepoints described are structural facts about supply chains rather than predictions about prices. Technology moves; where a page describes something as unresolved or in development, that was true when it was written.

Plutux is not an investment adviser. Market data and AI-generated analysis are for information and education only, not investment advice. Disclaimer

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Inference and serving — Artificial intelligence: How It Works and What It Depends On | Plutux