Decoder. plain-English AI glossary

Training cost

● Core

The upfront cost to train a model — includes compute, data, and development time.

Think of it like

The cost to build a factory, vs the cost to run it.

Example

Training a 7B model on 1T tokens costs ~$100K in compute; inference on that model costs pennies per user.

How it actually works

Training cost is a one-time or periodic expense. Once a model is trained, you can serve it infinitely. Training is bursty (you use compute for weeks, then nothing for months). Infrastructure choices here are different than inference.

For product teams

Training cost is investment; inference cost is recurring expense.

For engineers

Invest in training efficiency; distributed training, better hardware, and optimized algorithms all matter.

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