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Throughput. Latency.Cost. The Three-Way Tug of War Every AI Team Faces


5 mins.
Latency Throughput and cost - the LLM inference trilemma

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Isha Tilve Avatar
Latency Throughput and cost - the LLM inference trilemma

Table of Content

Inference Trilemma: Three Metrics. One System. Constant Tension. 

Getting a model to work is one problem. But getting it to work at 100 concurrent users, within budget, without your response times falling apart – that’s a different story altogether. 

Most teams don’t find this out until they’re already in production. But by then, the trade-offs are real. Add compute to fix latency, costs spike. Optimize for cost, latency drifts. Push for throughput, consistency suffers. Every solution creates a new problem somewhere else in the stack. 

This is the inference trilemma. And it just gets harder to ignore as the scale increases.

What’s The Inference Trilemma? 

The inference trilemma is the balancing act sitting underneath every production AI system. Three metrics that all need to hold at the same time – throughput, latency, and cost

  • Throughput is capacity. How many users your system can serve at the same time without things falling apart. 
  • Latency is speed. How quickly someone gets a response after they send a request.
  • Cost is the bill. What infrastructure runs you as your usage grows. 

Each one matters on its own. And together, they’re in constant tension. 

Add compute to fix your latency and the costs go up. Cut infrastructure spend and the response times start to drift. Design purely for high volume and the consistency suffers when load changes. Every decision you make on one dimension creates a ripple across the other two – that’s the trilemma.
And the larger the deployment, the harder it becomes to ignore.

Why You Can’t Just Fix One 

Most teams discover this the same way. They pick the dimension that’s hurting most and optimize for it. 

Latency usually goes first. Slow responses are visible – users notice, product teams escalate, and the fix seems obvious: more compute. Add resources, speed things up, and it works for a while. Then the infrastructure bill arrives and the economics look don’t hold. 

So now, the focus shifts to cost. Run leaner, maximize utilization, tighten the setup.
The costs start to improve. Then a traffic spike hits and response times climb again. 

The pattern repeats itself because the three dimensions aren’t separate. Pulling one lever moves the other two. And the real problem isn’t any single metric, it’s that most teams optimize reactively, rather than designing for balance from the start. The infrastructure decisions made early shape how difficult that balance becomes to find later. 

The Inference Trilemma Is Solvable 

The trilemma is solvable. Not perfectly – no configuration wins on all three dimensions simultaneously, but manageable enough to build production AI that performs reliably and scales without the economics going sideways. 

ITQ Technologies is a great example. Travelport’s exclusive regional partner across India, Sri Lanka, Maldives, and Bhutan, ITQ runs a custom AI model handling airline fare interpretation and refund processing – two workflows where both accuracy and speed matter. Before moving to purpose-built GPU infrastructure on Neysa Velocis, P99 latency sat at 14 seconds. After migration, it dropped to under 2 seconds. Infrastructure costs came down 40%. And today, the system processes around 141 billion tokens a month at sustained throughput of roughly 2,500 tokens per second. You can read the full case study here. 

That’s not a benchmark. That’s a live production system where throughput, latency, and cost were solved together, at real scale. The path there involved dedicated GPU clusters and infrastructure tuned to the specific workload – not a general-purpose setup stretched to fit. 

For teams who want to go deeper on the technical side – how quantization formats affect throughput, how GPU count interacts with concurrency, where the real performance trade-offs live – read our recent inference benchmarking blog , covering Llama 3 and Qwen 3 models detail here

Why the Model is Only Half the Answer 

This is the part that surprises most teams coming from a model-first mindset. 

The model matters. But the infrastructure it runs on, and how that infrastructure is configured, determines whether the model can actually deliver on what it’s capable of. The same model on different infrastructure produces meaningfully different results – in speed, in capacity, in what it costs to operate. 

The general-purpose cloud wasn’t designed for the specific demands of LLM inference.
High-throughput operations, consistent low-latency responses under variable load, GPU utilization that stays predictable as concurrent requests grow – these need infrastructure built around how AI workloads actually behave. Not adapted from something designed for a different problem. 

This is where Neysa Velocis comes in. Purpose-built for production AI – not general cloud with GPUs attached. The goal is giving teams the foundation to balance the trilemma properly: the right compute, visibility into what’s happening inside the inference stack, and the flexibility to adjust as workloads evolve. Because the right configuration today might not be the right one in six months. 

Scale With Confidence, Not Just Capability 

The organizations getting real value from production AI aren’t necessarily the ones with the best models. 

They’re the ones that built systems capable of delivering on what those models can do – consistently, at scale, without the economics unraveling as adoption grows. That’s a different kind of advantage. It’s operational, and it compounds over time. 

The inference trilemma doesn’t disappear. But the teams that understand it, and build infrastructure designed to manage it, aren’t spending their time firefighting. They’re spending it building. 

That’s the difference between AI that works in a demo and AI that works in production. 

Learn more about Velocis here

Why does AI inference cost so much more in India than expected, even after choosing a “cheaper” cloud GPU provider?
Sticker price per GPU-hour is only part of the equation. Under-utilized clusters, over-provisioning for peak load, and data transfer/egress charges typically add 30–40% to the effective cost. The ITQ Technologies example shows the real lever isn’t cheaper GPUs — it’s infrastructure tuned to actual workload patterns, which is how Neysa Velocis brought costs down 40% while improving latency.

What is a good P99 latency benchmark for LLM inference for Indian enterprises running customer-facing applications (BFSI, travel, retail)?
For real-time, customer-facing use cases like fare interpretation or claims processing, sub-2-second P99 latency is the practical enterprise benchmark. Anything higher tends to visibly affect user experience and conversion. This is the exact threshold ITQ Technologies achieved after moving off general-purpose cloud infrastructure onto purpose-built GPU clusters.

Should Indian enterprises use shared/general-purpose cloud GPUs or dedicated GPU clusters for production LLM inference?
Shared, general-purpose cloud GPUs work for prototyping but struggle to hold latency and throughput steady once concurrent request volume grows — because they weren’t architected for LLM-specific inference patterns. Dedicated, purpose-built clusters (like Neysa Velocis) give predictable performance at scale, which matters most for regulated or high-volume Indian industries like BFSI and telco.

How many tokens per second should an enterprise AI infrastructure setup in India realistically support for production workloads?
It depends on the workload, but as a reference point, a production system like ITQ’s processes roughly 141 billion tokens/month at a sustained throughput of ~2,500 tokens/second. Enterprises should benchmark against their own concurrent user count and request complexity rather than headline GPU specs alone.

Can Indian enterprises reduce GPU inference costs without sacrificing response speed?
Yes — but not by simply cutting compute, which is the most common mistake. Cost reduction without latency trade-offs comes from workload-specific infrastructure tuning (quantization choices, GPU-to-concurrency mapping, and utilization visibility), not from under-provisioning. This is the “solve together” approach outlined in the blog rather than optimizing one metric at the expense of the others.


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