AI inference glossary
Benchmark metrics

Cost per million tokens

Also known as $/M tokens, token cost

In plain English

This is the estimated infrastructure bill for producing one million tokens, the chunks of text an AI model reads and writes.

Technical definition

Cost per million tokens estimates the infrastructure cost of producing one million tokens at a measured operating point.

InferenceX form

$/M = TCO($/GPU-hour) × 1,000,000 / (3600 × tok/s/GPU)

Engineering details

InferenceX derives the metric from hourly total cost of ownership and measured token throughput. It may be reported for total tokens or separated into input and output tokens, so the denominator must be checked before comparing values.

Why it matters

Workload shape, interactivity, utilization, cache behavior, and cost assumptions determine whether two values are comparable. A low-throughput offline point and a high-interactivity endpoint represent different operating regimes.

How to read it in InferenceX

Cost curves use the same concurrency sweep as throughput curves. At iso-interactivity, lower $/M means the system delivers the same streaming experience with less modeled infrastructure cost.