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AI/ML

Model Inference

What model inference is and why it matters

Definition

Model inference is the process of running a trained AI model on new data to produce outputs - predictions, classifications, generated text, or other results. Inference is distinct from training: training builds the model, inference uses it. In production AI systems, inference determines response latency, compute costs per request, and overall system performance.

How it works

Training a model happens once (or periodically). Inference happens every time a user interacts with the AI. For a customer-facing chatbot, inference might happen thousands of times per hour. This is why inference cost and latency matter more than training cost for most businesses - training is a one-time investment, but inference is an ongoing operational expense.

Inference speed depends on model size, hardware, and optimization. A 7-billion-parameter model runs faster and cheaper than a 70-billion-parameter model. Techniques like quantization (reducing numerical precision), batching (processing multiple requests together), and caching (storing common responses) can dramatically reduce inference costs without meaningful quality loss.

For production applications, the infrastructure choice for inference matters. Options range from API providers (OpenAI, Anthropic) where you pay per token, to self-hosted models on GPU servers where you control costs but manage infrastructure. The right choice depends on volume, latency requirements, data privacy constraints, and budget.

How 1Raft uses Model Inference

We optimize inference for every AI product we ship. In a high-traffic commerce application, we reduced inference costs by 60% by switching from GPT-4 to a fine-tuned smaller model for product classification tasks without sacrificing accuracy. We model inference costs during architecture planning so clients understand their per-user and per-request economics before committing to a technical approach.

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