GPT-5
OpenAI's next-generation flagship — significant capability jump over GPT-4.1 with 1M context
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Tips to reduce cost
- →Use prompt caching to reuse repeated system prompts
- →Trim whitespace and reduce verbose instructions
- →Use a smaller model for classification or routing tasks
- →Batch async requests to get 50% discount (OpenAI/Anthropic)
- →Cache identical requests at the application layer
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Compared at your current token settings
About GPT-5
GPT-5 is a premium large language model from openai, priced at $8/1M input tokens and $32/1M output tokens. It is priced above the market average and best suited for frontier tasks & agents. The 1M context window makes it suitable for very long documents, large codebases, and book-length inputs.
For most production workloads, the cost breakdown is dominated by input tokens (system prompts, context, retrieved documents) rather than output. At this price point, GPT-5 is positioned for use cases where quality justifies the premium over cheaper alternatives.
GPT-5 supports prompt caching at $4/1M — a 50% discount on repeated input tokens. For applications with a fixed system prompt or repeated document context (RAG, chatbots, agents), enabling caching is the single highest-leverage cost optimization available.