😬 REDUCING TOKENS DOES NOT MEAN REDUCING COSTS

Summary from the TLDR AI newsletter

Many tools promise to cut AI costs by reducing the tokens used by LLMs. PointFive tested whether they actually reduce costs [16] by running the same prompt across 2,908 Claude Code sessions, with and without token reduction. Spoiler alert: in some cases, token compression INCREASED costs by nearly 50%! See the full study results