AI compute economics for application teams

Make your next AI commitment
work for your business.

Ferrous helps you size model API commitments, negotiate where you have leverage, and verify savings against actual usage. Independent advice for the people building the product and the people owning the budget.

Get a free assessment ↗ Why a 20% discount can cost more

One purchasing decision. A two-page assessment within two business days after we confirm scope and receive the agreed inputs. No call required to start.

Commit with evidence.

Match your minimum spend to demand you can support. Include unused commitments, credit expiry and capacity requirements.

Decision 01 · What should you buy?

Compare viable options.

Evaluate price alongside quality, latency, reliability and the effort needed to change providers or models.

Decision 02 · What can you change?

Verify the outcome.

Track realized savings and cost per successful task against an agreed baseline, with fees and implementation costs visible.

Decision 03 · Did it pay off?

Inside an assessment

A lower rate can still
mean a higher bill.

This example shows why utilization belongs in the purchasing decision. A discount has value only in the context of what you will actually use and what the commitment provides.

For your assessment, we distinguish observed facts from estimates and identify any information needed before recommending a change.

Where alternatives require a different model or architecture, they remain candidates until your team validates quality, latency and operating requirements.

Assess your next commitment ↗

Illustrative example · Not a client result

Check the minimum before the discount.

Assume a fixed monthly commitment covers usage worth $100,000 at published rates. The discount is 20%, but expected usage is only 70% of that allowance.

Monthly scenario · Same workload and service level
Usage allowance at published rates	$100,000
Fixed bill after 20% discount	$80,000
Expected usage at published rates	$70,000
Cost above usage-based pricing	$10,000
Break-even utilization	80%

Decision to examine: reduce the minimum or remain on usage-based pricing unless capacity or other contractual benefits justify the extra cost.

Assumes identical rates before discount, no rollover, no credits, no overage and no additional fees. Actual advice requires your terms and a demand forecast. These are arithmetic assumptions, not market benchmarks or projected savings.

When to bring us in

A purchasing decision ahead.
A reason to get the numbers right.

01 · Renewal or new commitment

Who we work with

Production AI.
A decision worth acting on.

Our focus is B2B AI application teams with recurring model API spend, a clear product workload and a purchasing decision in the next few months.

We are best suited to teams spending roughly $50,000–$250,000 a month on model APIs. Spend outside that range can still be a fit when there is enough actionable value.

We work alongside your finance and engineering leads. Your existing cost tools and financial models become inputs to the decision.

A useful starting point

A renewal, credit expiry or new commitment within 60–120 days.
Access to invoices, relevant terms and usage information.
A finance owner and an engineering counterpart who can act on findings.

Model APIs first. For GPU-heavy or self-hosted workloads, we confirm fit and technical scope separately.

Fit before fees. If the available evidence does not support a worthwhile engagement, we explain why. A small bill or an already competitive contract may need only a brief review.

Our approach

From one decision
to a measured result.

Free · One decision · Two business days after agreed inputs

Assess the opportunity

Start with a redacted invoice, quote or contract summary after we agree how to share it. Your two-page assessment identifies what the evidence supports, what is missing and the next decision to make.

Effective costRates, commitment utilization, credits and relevant fees.

Comparable optionsPublished pricing and available evidence, with sources and limitations.

Terms to examineMinimum spend, flexibility, capacity and renewal provisions.

Recommended next stepRenegotiate, resize, test an alternative or keep the current arrangement.

Scoped engagement

Build and execute the purchasing plan

Use validated demand and credible alternatives to set the commitment size and negotiating position. We support the negotiation and coordinate agreed changes with your team. Any engineering work has a named owner, scope and acceptance criteria before it begins.

Baseline agreed before changes

Verify savings and product performance

Reconcile subsequent invoices against the agreed baseline. Separate rate savings, efficiency changes and usage growth. Where workload data is available, measure cost per successful outcome alongside quality and latency. Your finance team receives the assumptions and evidence behind the result.

Founding cohort: savings-share engagements. For accepted engagements, Ferrous earns an agreed share of verified savings, with no fixed Ferrous fee. We agree the baseline, percentage, measurement period, payment timing and treatment of implementation costs before work starts. Third-party costs require your approval. The free assessment carries no obligation to proceed.

How we work

Independent advice.
Evidence you can inspect.

Paid by the buyer

No vendor commissions, reseller margins or paid supplier referrals. Recommendations can include a smaller commitment, a different provider or keeping the current setup.

Quality stays in the calculation

A cheaper model that creates more failures or human review may cost more overall. We agree the performance requirements before recommending workload changes.

A traceable baseline

Recommendations show their inputs and assumptions. Savings measurement accounts for agreed adjustments, including public price changes and work your team had already planned.

For CFO firms & investor platform teams

A compute specialist
alongside your team.

Bring us into a client or portfolio company's upcoming purchasing decision. You keep the financial relationship; Ferrous contributes the contract review, purchasing plan and savings evidence.

Start with one company that wants help. Expand to a small portfolio review when the process proves useful.

Discuss an introduction ↗

Useful inputs for your model. Expected spend after credits, commitment exposure and a documented bridge from the existing arrangement to the proposed one. Estimates and realized results are reported separately.

The company controls disclosure. Individual findings are shared with its authorized team. Sharing with a fund or another adviser requires the company's permission. Benchmark-data participation is a separate choice.

Before we start

Clear scope.
Clear expectations.

What can one invoice tell you?

It can reveal billed rates, credits and questions worth investigating. It cannot establish workload quality, migration feasibility or every contract obligation. The free assessment explains what we can conclude and what additional evidence is needed.

Can you always negotiate a lower rate?

No. Vendor flexibility depends on spend, timing, terms and credible alternatives. Sometimes the better decision is a smaller commitment, a workload change or no change at all. We do not guarantee a discount or a fundraising outcome.

How are savings and fees calculated?

Before an engagement, we agree what the same eligible workload would cost under the baseline, how usage and price changes are treated, and which implementation costs are deducted. Your proposal sets the savings-share percentage, measurement period and payment schedule. We do not treat an automatic public price reduction as a negotiated saving.

Do you need production access?

The initial assessment starts with agreed billing and contract information. Please do not send credentials, API keys or customer data. If later work needs technical access, the scope and access arrangements are agreed separately with your team.

Will my deal terms become benchmark data?

Not automatically. Any use beyond your engagement requires a separate agreement covering permission, aggregation and confidentiality restrictions. Participation is optional and is not required for the free assessment.

Start with one decision

Tell us what's next.
We'll assess the fit.

Share your spend range and the decision ahead. We aim to respond within one business day, confirm the scope and agree what information to review.

A useful first answer

Your free two-page assessment follows within two business days of scope confirmation and receipt of the agreed inputs.

Documents come later

Use this form for an initial enquiry only. We agree confidentiality and document-sharing arrangements before requesting contracts.

Talk to us directly

hello@ferrous.pro

Full name

Company

Work email

Your role

Monthly model API spend, before credits

Upcoming decision

What would you like help deciding?

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Make your next AI commitmentwork for your business.

A lower rate can stillmean a higher bill.

Check the minimum before the discount.

A purchasing decision ahead.A reason to get the numbers right.

Before you sign

Before the full bill arrives

Before volume hides the problem

Production AI.A decision worth acting on.

From one decisionto a measured result.