Startups turn to lower-tier AI models to cut costs as frontier pricing rises

Tuesday, August 11, 2026 - 11:11
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This is a departure from the early days, when companies trusted only the most powerful models regardless of cost. Now, founders are building orchestration layers and using tools like OpenRouter alongside custom, Hermes-style routing systems that send a task to the model best suited for the job both in terms of capability and price, a founder of an AI startup told ET.

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