Cheapest AI APIs in 2025: Complete Provider Ranking & Full Pricing Breakdown
A comprehensive analysis of the cheapest AI API providers in 2025, including token pricing, performance trade-offs, context limits, and best budget-friendly models for real-world use cases.
The AI landscape in 2025 looks radically different from just a year ago. The competition between OpenAI, Google, Anthropic, DeepSeek, Groq, Mistral, Cohere, and dozens of smaller players has triggered a full-blown price war, pushing token costs lower than ever before.
Today, a million tokens—which once cost $30 to $60—can now cost as little as $0.04 depending on the provider.
This article breaks down:
- The cheapest AI APIs in 2025
- Full pricing comparisons
- Cost-per-million-token tables
- Context window differences
- Free tier availability
- Which models offer the best value for your use case
If you're building anything from chatbots to agents to content generators, this guide will help you choose the most cost-efficient LLM provider.
🚀 Quick Summary
The cheapest AI API models in 2025 are:
| Rank | Model | Input Cost (per 1M tokens) | Output Cost | Notes |
|---|---|---|---|---|
| #1 | Cohere Command R7B | $0.0375 | $0.15 | Cheapest mainstream API |
| #2 | DeepSeek V3.2 (cache-hit) | $0.028 | $0.42 | Lowest cost with caching |
| #3 | Groq Llama‑3.1 8B | $0.05 | $0.08 | Fastest throughput (~840 TPS) |
| #4 | OpenAI GPT‑5 Nano | $0.05 | $0.40 | Most capable “nano-tier” model |
| #5 | Google Gemini 2.5 Flash | $0.15 | $0.60 | Cheap, huge 2M-token context |
Across nearly every category, DeepSeek and Cohere dominate the lowest-cost bracket, Groq leads on speed, and OpenAI wins on performance—but at significantly higher cost.
🏆 Price-per-Token Leaderboard (2025)
Below is a full comparison of leading LLM API providers sorted by input token cost.
Top 5 Cheapest Providers
| Provider | Model | Input ($/1M) | Output ($/1M) | Context Window |
|---|---|---|---|---|
| Cohere | Command R7B | $0.0375 | $0.15 | 128K |
| DeepSeek | V3.2 (cache-hit) | $0.028 | $0.42 | 128K |
| Groq Cloud | Llama‑3.1 8B | $0.05 | $0.08 | 128K |
| OpenAI | GPT‑5 Nano | $0.05 | $0.40 | 32K |
| Gemini 2.5 Flash | $0.15 | $0.60 | 2M |
Mid-Range Models
| Provider | Model | Input | Output | Notes |
|---|---|---|---|---|
| Mistral | Nemo 12B | $0.15 | $0.15 | Large context, open models |
| AI21 | Jamba Mini | $0.20 | $0.40 | 30% longer tokens |
| Anthropic | Claude Haiku 3.5 | $0.80 | $4.00 | Fastest Claude tier |
| xAI | Grok 3 Mini | $0.30 | $0.50 | 128K context |
Premium Models (For Rare Use)
| Provider | Model | Input | Output | Best For |
|---|---|---|---|---|
| OpenAI | GPT‑5 Pro | $1.25–$2.50 | $10–$15 | High-end reasoning |
| Anthropic | Claude Opus | $15 | $75 | Most advanced AI in 2025 |
| Gemini 2.5 Pro | $1.25–$2.50 | $10–$15 | Ultra-long context (2M) |
🔍 Provider-by-Provider Breakdown
1. Cohere — Command R7B (Cheapest Overall)
Cohere’s new Command R7B model delivers the lowest input token pricing among mainstream providers:
- $0.0375 per 1M input tokens
- $0.15 per 1M output tokens
- 128K context window
- Free prototype tier (rate-limited)
Despite its extremely low price, Command R7B performs well for:
- Summaries
- Q&A
- Chat applications
- Data extraction
For bulk jobs, this model has become the default choice for many startups in 2025.
2. DeepSeek — The Price War Leader
DeepSeek has shocked the world with ultra-low pricing:
- $0.28 per 1M input (cache-miss)
- $0.028 per 1M input (cache-hit)
- $0.42 per 1M output
- 128K context window
When caching is enabled, DeepSeek is the cheapest API on Earth, period.
Typical cost for 1M input + 1M output tokens on DeepSeek:
Uncached total: ~$0.70
Cached total: ~$0.45
This is 95% cheaper than GPT‑4 series models.
3. Groq Cloud — Fastest Token Throughput
Groq doesn’t build LLMs; it builds the hardware powering fast inference.
Its Llama‑3.1 8B model offers:
- $0.05/M input
- $0.08/M output
- ~840 tokens/sec throughput
- Free caching (50% discount)
Groq is the go-to option for:
- Real-time chatbots
- High-frequency agents
- AI routing systems
- Low-latency tools
It’s also popular among developers seeking OpenAI-compatible models without OpenAI’s pricing.
4. Google — Gemini 2.5 Flash (Huge Context, Low Cost)
Google’s Gemini Flash is designed for volume workloads:
- $0.15/M input
- $0.60/M output
- 2M-token context window (largest in the industry)
This makes it perfect for:
- Long-document summarization
- RAG systems
- Processing PDFs or books
- Agentic workflows with large memory
However, chain-of-thought output is priced separately and costs more.
5. Mistral — Nemo & Pixtral
Mistral continues its open-weights-first strategy and offers:
- Nemo 12B: $0.15/M input & $0.15/M output
- Pixtral 12B (vision): $0.15/$0.15
- Free API tier (la Plateforme)
Their models are extremely cost-efficient for:
- Visual inputs
- Moderate reasoning
- General chatbot behavior
🧪 Free Tier & Trial Comparison (2025)
| Provider | Free Tier | Notes |
|---|---|---|
| Cohere | Yes (trial key) | Free calls with rate limits |
| Google Gemini | Yes | ~$300 Cloud credits |
| AI21 | $10 credit | Valid 3 months |
| Mistral | Yes | Full free API tier |
| Fireworks | $1 credit | Serverless inference |
| Together AI | Small credit | Includes open models |
| OpenRouter | $1 credit | Includes DeepSeek R1 free instance |
| OpenAI | No API free tier | Only ChatGPT web trial |
Nearly all providers offer some sort of trial environment—testing models costs almost nothing.
📌 Best Cheap Model by Use Case
📝 Summarization / Long Context
Use:
- Gemini 2.5 Flash (2M context)
- Claude Haiku (200K context)
- DeepSeek or Mistral Nemo (128K)
💬 Chatbots & Customer Support
Use:
- Cohere Command R7B
- Groq Llama 8B
- GPT‑5 Nano (best accuracy)
👨💻 Coding & Developer Tools
Use:
- DeepSeek Coder (V3 series)
- Groq GPT‑OSS‑Coder
- Claude Sonnet (higher cost, higher accuracy)
🔎 Agents & Tool Use
Use:
- Groq Mixtral / Llama for speed
- DeepSeek V3.2 for reasoning
- Qwen2‑14B via Together AI for chain-of-thought
🧮 Cost Examples
Example 1: 100,000-Token Summarization Job
| Provider | Total Cost |
|---|---|
| DeepSeek (cached) | $0.004 |
| Cohere R7B | $0.006 |
| Groq Llama‑8B | $0.005 |
| Google Flash | $0.015 |
| OpenAI GPT‑5 Nano | $0.05 |
Example 2: Chatbot with 1M Messages per Month
Assuming 50 input + 50 output tokens per message:
| Provider | Monthly Cost |
|---|---|
| DeepSeek | $67–$120 |
| Cohere R7B | $95 |
| Groq | $75 |
| OpenAI GPT‑5 Nano | $450 |
🧭 Choosing the Right Provider
When deciding among these providers, consider:
1. Model Quality
Cheapest models may lack complex reasoning abilities.
2. Context Window
If you process long documents, Gemini or Claude may be necessary.
3. Throughput
For real-time apps, Groq often outperforms everyone.
4. Caching Behavior
DeepSeek and Cohere reward repeated prompts with huge savings.
5. Ecosystem Support
OpenAI still leads for plugins, tools, and dev-friendliness.
📉 Why AI Pricing Has Collapsed in 2025
Three forces created the current price war:
- Open-source model explosion (Llama 3+, Mistral, Qwen)
- Chinese competition (DeepSeek pushing prices toward zero)
- Hardware breakthroughs (Groq LPU™, Nvidia Blackwell)
The result?
Token prices have dropped 10×–50× since 2023.
This trend will likely continue into 2026.
🏁 Final Thoughts
2025 is the cheapest year in history to build with AI.
Whether you need a high-volume text generator, agent framework, or low-cost chatbot, you now have dozens of budget-friendly options.
Best overall value: Cohere Command R7B
Lowest absolute price: DeepSeek V3.2 (cache-hit)
Fastest inference: Groq Cloud
Best for long context: Gemini 2.5 Flash
To estimate your exact costs, try our AI Pricing Master Calculator.
Last Updated: November 15, 2025
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