All glossary terms

Efficiency

GPU utilization

The share of a card's billed time that actually does serving work, and the share of its bandwidth serving reaches. The bill only knows the first.

GPU utilization is quoted by two very different gauges. The dashboard gauge (SM utilization) says how often any compute kernel ran in the last sample window; decode keeps it near 100 percent while running at a fraction of its actual bandwidth, so it says nothing about how busy the card truly is. The utilization that matters for cost is the roofline one: measured tokens per second against the bandwidth ceiling the model allows.

Neither gauge is what the invoice reads. A card is billed by the hour whether it computed or waited, so idle hours are pure cost: a card at 20 percent of its achievable throughput delivers tokens at roughly five times the unit price of the same card kept busy. Raising utilization is the cheapest performance purchase available, because it changes the denominator of cost per million tokens without touching the rate card.

The interview framing: report utilization as a fraction of the honest ceiling, not as the dashboard gauge, and then connect it to money - the bill is fixed and the output is what varies.

A worked example

One card at $2.50 per hour and 70 GB of 8-bit weights, sustaining 400 aggregate tokens per second today, with a batching fix expected to reach 800.

  1. At 400 tokens per second: tokens per hour = 400 x 3,600 = 1.44 million, so cost per million is $2.50 / 1.44 = about $1.74.
  2. At 800 tokens per second: 800 x 3,600 = 2.88 million tokens an hour, so $2.50 / 2.88 = about $0.87 per million.
  3. The card is billed $2.50 both ways; doubling the achieved throughput halves the unit cost.

Utilization, not the hourly rate, is the lever on self-hosted cost per token: the bill is fixed and the output is what varies.

Where this shows up

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