How Generative AI applications on AWS cost can be optimized: A detailed guide

Saranraj

Saranraj

March 07, 2025 Author

The Capabilities of large business value are rising across enterprises for building their Generative AI applications in Amazon Web Services (AWS). It is significant to recognize the complete potential of transformative technology by designing performant and cost-effective generative AI applications. As per the latest report curated by McKinsey & Company, it has been estimated that Generative AI can significantly add an equivalent of $2.6 trillion to $4.4 trillion in relevance to the global economy. The four pillars that impact the global economy involve customer operations, software engineering, marketing & sales and R&D.

As a leading AWS GenAI Consulting Services Company, Nextbrain has curated a detailed approach to optimizing the costs of Generative AI applications on AWS. This study sets forth a concise view of the factors determining the cost of Generative AI applications on AWS and the approximate cost optimization strategies.

What are the major pillars of cost and performance optimization?

major pillars of cost and performance optimization

Token usage

It analyzes token usage in many ways. The cost of using a generative model is based on the number of tokens processed, and it can directly impact the cost of an operation. It comprehends the token limits and factors driving token count and puts guardrails in place. Restricting the token count helps optimize token costs and performance.

Model selection choice/customization

It comprises the optimal model that can be tailored for various use cases. It is followed by model validation for choosing the right model and customising accordingly.

Inference pricing plan & usage patterns 

The popular pricing models involve on-demand and provisioned throughput. The on-demand pricing is ideal for models with charges depending on the total number of input/output tokens with no guaranteed token throughput. The provisioned throughput is suitable for workloads based on guaranteed throughput along with relatively higher costs.

Miscellaneous factors   

Several other miscellaneous factors involve security guardrails by applying filters for personally recognizable information, undesirable topics, harmful content and identifying glitches. The filters perform as well as scale independently of LLMs and have costs that are directly equivalent to the total number of filters and tokens evaluated. Vector databases are considered a critical element of Gen AI applications. With time the amount of data in Gen AI applications grows, and with it, vector database costs also grow.

Chunking strategy 

The process is utilized to chunk data whether for semantic or fixed size that can impact both the accuracy and operational costs. It involves selecting an apt strategy for optimizing performance while managing expenses. 

API & service costs

  • Bedrock API calls
  • SageMaker inference
  • Lambda invocations
  • API gateway requests

What exactly is the RAG costs?

RAG cost

RAG assists in LLM answer questions that are specific to corporate data even when the LLM was never trained on the usable data. The Gen AI application harnesses the vector embeddings for searching and retrieving chunks of data that are quite important to the user’s question. 

The process follows stepwise situations:

API & service costs

User question→request to generate embeddings→ returns embeddings→

Search embeddings→ return context →sent context & question→return narrative→ response to user.

For instance, a Gen AI application like a virtual assistant can seamlessly carry a conversation with users. A multi-turn conversation needs the application to keep track of per-user question-answer history and share it with the LLMs. It can be easily stored in a database, Amazon DynamoDB. At times, the Gen AI application can also use Amazon Bedrock Guardrails for detecting ground responses to the knowledge base and filtering accordingly. By leveraging RAG, companies can advance and improve the integration of Gen AI applications on AWS. Any AWS AI Consulting company will guide the multifaceted ways of cost optimization of Gen AI applications on AWS.

Amazon bedrock costs

As a fully managed service, Amazon bedrock offers access to high-performing foundation models from leading providers through a unified API. The above workflow shows how the Gen AI app uses Amazon Bedrock APIs for sending texts to an LLM like Amazon embeddings. It can generate text embeddings and send prompts to a LLM for generating a response. With an on-demand model, an LLM can process a maximum request per minute (RPM) and tokens per minute (TPM).

On the contrary, with Amazon Bedrock provisioned throughput, cost mainly depends on a per-model unit basis. Model units are dedicated for the duration users plan to use. Individual model units provide a certain capacity of maximum tokens per unit. Thus, the number of model units and costs are determined by the efforts given as input and results.

Amazon Bedrock Guardrails  

Skilled developers from an AWS GenAI Consulting Company can assist in resolving problems like avoiding users asking off-topic questions or avoiding responses to user questions relating to hate and violence. In this scenario, Amazon Bedrock comes into play. Guardrails provide multiple policies like denied topics, content filters, sensitive information filters and contextual grounding checks. Selective filters can be applied to sections of data such as system prompt, user prompt, and LLM responses. 

Vector database costs

The growth of data usage within generative AI applications increases the expenses of vector databases. AWS comes with a wide plethora of databases such as Amazon RDS, OpenSearch service, MemoryDB and Aurora. Vector databases play a significant role in grounding the responses to your enterprise data whose vector embeddings are kept in a record within a vector database.

Final Conclusion

As a part of the observation, we have evaluated the different factors that influence the costs for your generative AI application. Being a certified AWS partner, Nextbrain offers a cluster of AWS AI Services that comprises data management capabilities, AI infrastructure, machine learning tools, pre-trained AI services, Generative AI, responsible AI development and data management capabilities. By harnessing these offerings, organizations and businesses can elevate overall work productivity, enhance customer experience, drive innovation as well as optimize processes. AWS comes with a suite of AI services that are designed to elevate business performance and enhance customer experience. 

Are you ready to get started? To learn more about Generative AI applications on AWS, connect with our professionals.