arXiv AI By Herbert Woisetschl\"ager, Arastun Mammadli, Ryan Zhang, Shiqiang Wang

Cost-Optimal LLM Routing with Limited User Feedback under User Satisfaction Guarantees

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arXiv:2606. 19376v1 Announce Type: cross Abstract: Inference costs for large language model (LLM) applications are rapidly growing, driven by surging demand and rising infrastructure cost.

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Routing each query to a cost-effective large language model (LLM) is critical for balancing quality and cost, yet most routers rely on a centralized task center to predict model performance, creating an information-risk mismatch and a scalability bottleneck as the model pool grows. We propose a market-based routing paradigm that shifts ex-ante prediction to LLM providers via a reverse auction, where providers bid with self-predicted success probabilities and execution costs.