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.

OpenAI's AI model economics are shifting, with cost influencing startup strategies. Smaller models now perform well, freeing up resources for complex tasks. India's deep…

Surging agentic AI costs are making routers—software that allows organizations to choose the AI model for the right task—one of the hottest areas in enterprise tech.