InsightsResearch
Right-sizing models: routing between small and frontier models
Most steps in an operational workflow do not need the largest model: how to send each one to the smallest model that does it well, and why Arabic changes the arithmetic.
Abstract
An operational workflow is a chain of steps: classify a message, extract an order, draft a reply, reconcile an invoice. Many deployments send every step to one frontier model. We ask how much of that spend buys quality, and what changes when the work is in Arabic. We review the published evidence on routers and cascades, on distilled, small and quantized models and on caching, and combine it with measured tokenizer costs for Arabic and with list prices read on 14 October 2026. On their own benchmarks, routers and cascades keep most of a frontier model's quality for a fraction of its cost, but the saving varies several-fold by task and depends on how closely the router's training data resembles the traffic it meets. Arabic adds a multiplier: the tokenizer behind ChatGPT and GPT-4 needed 3.04 times as many tokens for Standard Arabic as for the same English text, while tokenizers built for Arabic come close to parity. Routing should therefore be set step by step, on the customer's own past cases, with tokens counted in Arabic, among the models that residency allows.
Key findings
- Routers and cascades keep most of a frontier model's quality for much less: FrugalGPT matched GPT-4 on a financial headlines task at 98.3% lower cost, and RouteLLM reached 95% of GPT-4's MT Bench score with a cost saving ratio of 3.66 [1, 2].
- The saving depends on the task: the same RouteLLM routers achieved ratios of 1.41 on MMLU and 1.49 on GSM8K, so no published figure transfers to a Gulf workflow without a test on its own past cases [2].
- English-centric tokenizers tax Arabic: the one used by ChatGPT and GPT-4 needed 3.04 times as many tokens for Standard Arabic as for the same English text, while the bilingual Jais tokenizer brings Arabic fertility to 1.050 against 1.010 for English [3, 4].
- List prices read on 14 October 2026 put the frontier and small models we priced 40 to 100 times apart per token, so the share of steps a small model can take, not its own price, decides most of the bill [5, 6].
- The two first-party APIs we reviewed offered in-country inference in the Gulf only in the UAE, for a few models; where data must stay in the country, small open-weight Arabic models run locally become the default [7, 8, 9, 10].
1Introduction
A workflow in a Gulf distributor or logistics company is a chain of steps. An order that arrives on WhatsApp is classified, extracted into lines, checked against the catalogue, confirmed with a reply and, weeks later, reconciled against a delivery note and an invoice. Each step can go to a different model. Most first deployments send all of them to the most capable model available, because that is the surest way to make the first workflow work.
That default grows expensive with success. Vendors bill per tokenA piece of text, often part of a word, that a model reads or writes. Vendors bill per million tokens read and per million written., and on the pricing pages we read on 14 October 2026, OpenAI listed gpt-6-astra at $10.00 per million input tokens and $50.00 per million output tokens and gpt-6-luna at $0.10 and $0.50, while Anthropic listed Claude Opus 5.5 at $4 and $20 and Claude Haiku 5.5 at $0.10 and $0.50 [5, 6]. In 2023, Chen, Zaharia and Zou noted that the fees of language model APIs could differ by two orders of magnitude [1]. They still do.
The Gulf sharpens the question. The work arrives in Arabic and English, often in the same message, and English-centric tokenizers need several times as many tokens for the same Arabic text [3, 11]. Some data cannot leave the country, which rules models out before price is discussed. And a reply in Gulf Arabic, the output a customer actually reads, is where published evaluations are thinnest and hardest to automate [12].
We ask how a company can keep frontier-level quality at lower cost by sending each step to the smallest model that does it well. This is a review of published evidence with our own arithmetic, not a report on a measured deployment. It contributes:
- A review of routing, distillation, quantization and caching (section 2).
- A cost model and a calculator at list prices read on 14 October 2026 (section 3).
- The Arabic tokenizer premiums, quoted from the studies that measured them (section 4).
- A mapping of four common workflow steps to model size, offered as our starting judgement (section 5).
- A router design, and a procedure for testing any routing change on the customer's past cases (sections 6 and 7).
2Background and related work
Three lines of work bear on the question: choosing which model handles a request, making small models capable of more, and not paying twice for the same tokens. Tokenization follows in section 4.
Cascades and routers
FrugalGPT framed the problem in 2023 [1]. Its cascade sends a query to a cheap model first and moves to a dearer one only when a small scorer, in its case study a DistilBERT regression model, judges the answer unreliable. Matched to the accuracy of the best single model, the cascade cost 98.3% less on HEADLINES, a financial news task, 73.3% less on OVERRULING, a legal one, and 59.2% less on the reading set COQA.
A router decides before any model is called. Hybrid LLM predicts from the query alone whether a small model's answer will come close to a large one's, and reports up to 40% fewer calls to the large model with no drop in response quality [13]. The gain shrank as the gap between the pair grew: between Llama-2 7B and 13B, its deterministic router sent 40% of queries to the small model for a 0.2% drop in quality; between Llama-2 13B and GPT-3.5-turbo, the same share cost up to 4% in quality.
AutoMix lets the small model check itself through few-shot self-verification, and a router built on a partially observable decision process uses that estimate to decide whether to escalate. It reports more than 50% lower computational cost for comparable performance across five models and five datasets [14].
RouteLLM learned routers from 80,000 human preference battles in Chatbot Arena, augmented with comparisons judged by GPT-4, and sends each query to one of GPT-4 or Mixtral 8x7B [2]. Its best routers reached 95% of GPT-4's score on MT Bench [15] with a cost saving ratio of 3.66 against a random router, and its most expensive router added under 0.4% to the cost of GPT-4 generation.
| Method | Decides | Learns from | Reported result |
|---|---|---|---|
| FrugalGPT [1] | After the cheap model answers | Labelled answers, for a small scorer | The best single model's accuracy at 59.2% to 98.3% lower cost |
| Hybrid LLM [13] | Before any call | Quality gaps on 10,000 training instructions | Up to 40% fewer calls to the large model, with no drop in quality |
| AutoMix [14] | After the small model checks itself | Few-shot self-verification | Over 50% lower computational cost for comparable performance |
| RouteLLM [2] | Before any call | 80,000 human preferences, plus GPT-4 judgements | A cost saving ratio of 3.66 at 95% of GPT-4's MT Bench score |
All four were measured on English benchmarks with models of 2023 and 2024; none on Arabic or on operational data.
Smaller models
DistillationTraining a small model to reproduce a larger model's outputs, so that the small one can do the task alone. trains a small model to reproduce a large one [16]. Gemma 2's 2B and 9B models were trained this way, and their authors describe them as competitive with models two to three times larger [17]. FrugalGPT applies the idea to a single task: fine-tune a small model on an expensive model's answers, which also allows shorter prompts and faster answers [1]. Read the vendor's terms first: Anthropic's prohibit using its services to train competing AI models without its approval [18]. Small general models are often English-first: the authors of Phi-3-mini, a 3.8-billion-parameter model that scored 69% on MMLU, mostly restricted its language to English [19].
QuantizationStoring a model's weights in fewer bits, for example 4 instead of 16, so that it needs less memory and runs faster, sometimes at a cost in quality. cuts the cost of serving any model. LLM.int8() ran a 175-billion-parameter model in 8 bits without performance loss [20], and AWQ keeps 4-bit models accurate by protecting about 1% of salient weights [21]. For Arabic the caveat is direct. Quantization hurt non-Latin-script languages most, and automatic metrics understated the damage: a 1.7% automatic drop in Japanese matched a 16.0% drop reported by human evaluators [22]. Arabic was evaluated automatically but not by people, so any hidden loss there is unknown.
Caching and serving
Both vendors we priced offer prompt cachingThe vendor keeps the start of a prompt that repeats across requests and bills those tokens at a reduced rate when they are read again.. Anthropic bills cache reads at 0.1 times the input price on most models and 0.05 times on Claude Opus 5.5 and Claude Sonnet 5.5 [6]; OpenAI discounts cached input by up to 95% when the whole rendered prefix matches [23]. An agent's instructions, catalogue and customer rules repeat on every call, so they go first and the incoming message last. GPTCache reuses whole answers to similar requests and reports responses 2 to 10 times faster on a hit [24]; that suits stable lookups, not answers that depend on today's stock or balance.
For models run on one's own hardware, serving matters as much as size. vLLM's PagedAttention raised throughput 2 to 4 times at the same latency [25], and speculative decoding, in which a small model drafts tokens that the large one verifies, ran T5-XXL 2 to 3 times faster with identical outputs [26].
3What a step costs
A step costs the tokens it reads times the input price, plus the tokens it writes times the output price. Routing changes the prices; caching and shorter prompts change the input tokens; tokenization, in section 4, changes both token counts at once.
Each pair of bars is one model's price in US dollars for a million input tokens and a million output tokens; the small models barely register at this scale.
Within each vendor, the large model costs 40 to 100 times the small one per token, and for all four models output costs five times as much as input, so drafting a reply costs more per token than classifying a message. Prices across vendors are not like for like, because each model counts tokens its own way: Anthropic notes that the tokenizer it introduced with Claude Opus 4.7 produces about 30% more tokens for the same text than the one before [6].
At a 100-fold gap, routing a share of steps to the small model saves almost exactly that share: routing 70% saves 69.3%. A cascade also pays the small model on the steps it escalates, but at a 30% escalation rate and the gaps above, that adds under one percentage point to the bill, so the choice between a router and a cascade turns on latency and the quality of the check, not on price. As an illustrative example, 50,000 steps a month, each reading 3,000 tokens and writing 500, cost $2,750 on gpt-6-astra alone and $844.25 with 70% of them on gpt-6-luna; with Claude Opus 5.5 and Claude Haiku 5.5, the figures are $1,100 and $349.25.
Choose the two models, the steps a month, the tokens each step reads and writes and the share the small model takes, and read the monthly bill at list prices read on 14 October 2026 [5, 6].
The calculator leaves out three adjustments. Anthropic bills batch requests at half price [6], which suits steps that can wait, such as a nightly reconciliation. Caching cuts the input term. Regional processing costs more: OpenAI adds 10% for data residency on models released from 5 March 2026, and Anthropic charges 1.1 times the standard rate for US-only inference [5, 6]. Prices also move on their own: Google lists Gemini 4 Argon at $2.00 per million input tokens through 30 November 2026 and $4.00 from 1 December 2026 [27]. A routing decision should carry the date of the prices it was made on.
4The tokenizer tax on Arabic
A token is not a fixed amount of text. A tokenizerThe component that cuts text into tokens. One trained mostly on English cuts Arabic words into more, smaller pieces. learned mostly from English cuts Arabic into more pieces, so the same message costs more, takes longer and fills more of the model's context. Petrov and colleagues measured this on FLORES-200A benchmark of the same sentences, taken from Wikipedia, translated into about 200 languages, so that languages can be compared on identical content. as a tokenization premiumThe number of tokens a language needs for a text, divided by the number English needs for the same text. A premium of 3 means three times the tokens. [3]. On cl100k_base, the tokenizer of ChatGPT and GPT-4, Standard Arabic had a premium of 3.04, and so did Najdi Arabic, spoken in central Saudi Arabia; on GPT-2 the premium was 4.40. The authors tie premiums directly to cost, since vendors bill per token, and to latency, since processing time in their measurements grew linearly with the number of tokens.
Each bar is one tokenizer's premium: 1.00 would match English and 3.04 means three times as many tokens; the orange bar is the tokenizer of ChatGPT and GPT-4.
The multilingual tokenizers in the study's main comparison sit between 1.14 and 1.40, and one trained for Arabic reverses the premium: Arabic BERT needs fewer tokens for the Arabic text than for its English translation. It also stays near parity across 25 Arabic dialects, at 0.91 for Jeddah, 0.92 for Doha and Riyadh and 0.94 for Muscat relative to Standard Arabic [3]. Ahia and colleagues, studying OpenAI's API in 22 languages, found languages with their own scripts needing up to five times as many tokens as English, and their speakers overcharged while obtaining poorer results [11]. Their Arabic results are shown only in figures.
Tokenizers built for Arabic
Jais trained a byte-pair tokenizer of 84,992 entries on 10 billion words, half English and half Arabic; Table 2 gives its fertilityThe average number of tokens a tokenizer produces per word. Close to 1 means that words are rarely split. comparison [4]. ALLaM instead merged an Arabic vocabulary into the tokenizer of Llama-2 and reports that this lowers fertility in Arabic [28].
| Tokenizer (vocabulary size) | English | Arabic | Code |
|---|---|---|---|
| GPT-2 (50,257) | 1.095 | 4.171 | 1.294 |
| BERT Arabic (32,000) | 1.632 | 1.125 | 1.313 |
| BLOOM (250,000) | 1.083 | 1.195 | 1.000 |
| Jais (84,992) | 1.010 | 1.050 | 1.006 |
Lower is better. These are the Jais authors' measurements on their own validation sets, not an independent comparison.
For routing, the price of a step in Arabic is the vendor's price times a premium that depends on each model's tokenizer, and the premium can differ between the frontier model and the small one. As an illustrative calculation, a premium of 3.04 on reading and writing would turn the $2,750 month of section 3 into $8,360 for the same work. We found no published measurement on Arabic of the tokenizers behind the models in Figure 1, and tokenizers change between versions of a model [6]. The premium has to be measured on the customer's own messages and documents, in both languages, with each candidate model's own token count.
5Matching steps to models
Table 3 takes four steps that recur in Gulf distribution and logistics and sets out where we would start each one. It is our judgement from the evidence above, and every row is a hypothesis to test on the customer's past cases (section 7).
| Step | Illustrative input | Start on | Why | Escalate when |
|---|---|---|---|---|
| Classify a message | A WhatsApp message in Arabic and English: an order, a complaint or a promise to pay | A small model or a fine-tuned classifier | Fixed labels, a short input and a one-word output; a wrong label surfaces at the next step | Confidence is low, or no label fits |
| Extract an order | A message or a photographed delivery note with items, quantities, a branch and a date | A small model with a fixed output schema | Code can check the output against the schema, the catalogue and the customer's usual quantities | Any of those checks fails |
| Draft a reply in Gulf Arabic | A reply to a hotel group's buyer about a late delivery | A frontier model, or the strongest Arabic model the data may reach | Free text in dialect, read by a customer; the hardest output to check automatically | A person reviews it wherever the customer's thresholds say so |
| Reconcile an invoice | The invoice, purchase order and signed delivery note for one order | Code for the arithmetic, a small model to match lines, a frontier model for exceptions | Totals belong in code; matching lines is extraction; explaining a short delivery needs judgement | Lines do not match; above the customer's threshold, a person decides |
Mixed-language messages and Arabizi belong in the small model's test set, not in automatic escalation.
Three principles sit behind the table. Give a step a contract where one exists: an extraction that code can check can start on a small model, and Anthropic itself describes its smallest current model as meant for tasks such as classification, extraction and routing [29]. Keep arithmetic in code, which does it exactly. And spend the frontier model on free text that a customer reads, especially in dialect.
AraDiCE found Arabic-centric models such as Jais and AceGPT ahead of multilingual ones on dialect tasks, with significant challenges remaining in dialect identification, generation and translation [12]. Models did better on Gulf Arabic than on Levantine or Egyptian, which the authors attribute to its closeness to Standard Arabic; but they had to replace free generation with a multiple-choice task, because models often explained the prompt instead of replying in the dialect. Free text in dialect is where automatic evaluation is weakest, so people judge it.
6A router for operations
Figure 3 shows our design for one step. A router decides before the call where the step's type makes the decision easy, and a cascade's check catches what the router lets through.
From the left: routine steps go to the small model and are checked; steps that fail the check, or that the router knows are hard, go to the frontier model; every outcome is recorded and joins the past cases.
Rules come first, because many steps announce their difficulty. An order from a known customer, in a known pattern, with items in the catalogue, is routine; a dispute, a legal notice or an amount above the customer's threshold is not. A learned classifier takes only what the rules leave undecided, and as section 2 showed, its cost is small next to generation.
The check should be as deterministic as the step allows: the schema, the catalogue and the customer's usual quantities for an extraction; the classifier's confidence and a list of labels that always escalate for a classification; a model only for free text, as in AutoMix's self-verification or FrugalGPT's scorer [14, 1]. A deterministic check also leaves a reason in the log when it fails.
Latency decides between routing first and checking after, because a cascade that escalates calls two models in sequence [2]. For a customer waiting on WhatsApp, known-hard steps should go straight to the frontier model; a nightly reconciliation can wait, and can go in a batch.
{
"step": "extract_order",
"routed_to": "small",
"reason": "known customer, known order pattern",
"model": "gpt-6-luna",
"tokens_in": 2140,
"tokens_out": 310,
"check": "passed: schema, catalogue, quantity range",
"escalated": false,
"cost_usd": 0.00037
}Logging each routing decision makes routing auditable. Every escalation is a case the small model could not do, and every pass that a person later corrects is a case the check missed. Both become past cases for the next test.
7Testing a routing change on past cases
Every figure in section 2 was measured on someone else's data, in English. RouteLLM's routers saved most on MT Bench, the benchmark closest to their training data, and far less on MMLU and GSM8K [2]; FrugalGPT's savings ranged from 59.2% to 98.3% [1]; Hybrid LLM's loss of quality grew with the gap between its models [13]. The only reliable estimate of what routing will save on a step, and at what cost in quality, comes from that step's own past cases.
Each bar is how many times fewer GPT-4 calls the best router needed than a random one to recover half the quality gap between Mixtral 8x7B and GPT-4; the brackets give the quality reached as a share of GPT-4's score.
The MMLU result carries the practical lesson. Routers trained only on Chatbot Arena conversations did no better than random on MMLU; adding about 1,500 labelled MMLU examples, under 2% of the training data, brought every router to roughly 20% fewer GPT-4 calls than random at the same quality [2]. Our reading is that a modest number of a company's own labelled cases may matter more to a router than any amount of public data.
The procedure
- Write the step's contract with the team that does the work today: the fields of an extraction, the labels of a classification, what a good reply says.
- Collect past cases as they arrived, including mixed Arabic and English, Arabizi and photographed documents. The team marks the correct output for each.
- Run both models on every case with the same prompt and the same check, recording tokens, cost and latency, with tokens counted by each model's own tokenizer.
- Score with the step's own measure: field match, label accuracy, or people's ratings for Arabic free text. GPT-4 judges agreed with people over 80% of the time on English chat [15], but we found no such evidence for Gulf Arabic, and automatic scores can miss losses that people see [22].
- Set the routing rule at the threshold where the routed step meets the quality bar the team chose, and read off the share routed, the escalation rate and the saving.
- Run it in shadow mode beside the live step before it acts, and send every difference to the team.
- Run it again when anything changes: a model version, a tokenizer, a price or a new kind of message.
8When the data cannot leave
Where a customer, or a rule in its sector, keeps data in the country, a model that runs abroad is not eligible for the steps that read that data, whatever it costs.
On 14 October 2026, Anthropic's API offered inference in two geographies, global and the United States, and kept data at rest only in the United States [8]. OpenAI listed ten data residency regions; the UAE was one of three with inference in the region, limited to named models such as gpt-5.6-luna and subject to additional approval [7]. Neither page mentioned Oman, Saudi Arabia, Qatar, Bahrain or Kuwait. Models offered through the large clouds' marketplaces follow each cloud's own regional rules, which we did not review.
That leaves open-weight models run on hardware in the country, and there are now small ones built for Arabic. The Jais family spans 590 million to 70 billion parameters under the Apache 2.0 licence [9]. ALLaM-7B-Instruct-preview comes from the National Center for Artificial Intelligence at the Saudi Data and AI Authority [30]. Fanar Prime, a 9-billion-parameter model from the Qatar Computing Research Institute at Hamad Bin Khalifa University, was continually trained from Gemma-2 9B [10], itself a distilled model [17].
Where a workflow must keep personal data in the country, routing and residency meet. Steps that read personal data, such as a customer's name and phone number, can go to a model run in the country; steps without it may go abroad under paper agreed with the customer. That model then carries the routine volume for reasons of cost and the sensitive volume for reasons of law, and the test in section 7 has to show it is good enough for both. Self-hosting is billed in hardware and operations rather than tokens, and serving software and quantization decide how much it can carry [25, 21].
9Implications for deployment
The evidence points to six rules.
- Start on the strongest model, then earn the move down, step by step, on past cases.
- Decide per step. Classification and extraction are the usual first candidates for a small model; free text in dialect is the last.
- Count tokens in Arabic, on the customer's own documents, before comparing prices.
- Let residency choose before price does. Decide which models may read which data, then route among those.
- Cache the stable part of every prompt and batch what can wait [6, 23].
- Date every price. A routing decision is only as current as its price list.
This is how we approach it at Qantara. Our engineers work on site inside the customer's operation, write down how each workflow really runs and record a baseline. Each agent is run on the customer's past cases before it goes live, with their team marking what good looks like, and we treat a routing change as a new version of the agent that must pass the same cases. For each workflow we state in writing which model reads what and where it runs. The record and its log are kept in the customer's country, every read and write is a line in the log, including which model did each step, and above the customer's thresholds a person approves, whichever model did the work.
10Limitations
The paper is limited in seven ways.
- Every routing result we cite was measured in English with models of 2023 and 2024; none on Arabic, mixed-language messages or operational data.
- The Arabic premiums are for tokenizers published up to 2023. The tokenizers of the models priced here are unmeasured in the literature we found, and their premiums may be lower or higher.
- Prices are one day's list prices for two vendors' first-party APIs at the standard tier. Negotiated, marketplace and regional prices differ, and some are already scheduled to change [27].
- Self-hosting costs are not modelled, and the calculator does not apply to them.
- Table 3 and Figure 3 are design judgements to be tested, not findings.
- The residency review covers two vendors' documentation on one date, and it is not legal advice.
- The evidence that automatic metrics miss quantization losses comes from languages other than Arabic [22].
A router that transfers to Arabic operational data without labelled cases from it, or frontier prices that fall to the level of today's small models, would weaken the case for routing step by step.
11Conclusion
The published evidence agrees on the direction: most requests do not need the largest model, and routers and cascades keep most of the quality for much less. It disagrees on the size of the saving, which depends on the task, on the gap between the models and on how closely the router's training data matches its traffic. In the Gulf, two more terms enter the arithmetic: Arabic text costs several times as many tokens on English-centric tokenizers, and some data cannot leave the country at all.
The answer is to decide per step, on the customer's own past cases, with tokens counted in Arabic and English, among the models the data may reach, and to log every decision. Done that way, right-sizing is a routine rather than a one-off saving: every new model, price or tokenizer is another run of the same cases.
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Cite this paper
Qantara Research (2026). Right-sizing models: routing between small and frontier models. Qantara, 14 October 2026. https://qantara.systems/insights/right-sizing-models
@techreport{qantara2026rightsizingmodels,
title = {Right-sizing models: routing between small and frontier models},
author = {Qantara Research},
institution = {Qantara},
year = {2026},
month = {oct},
url = {https://qantara.systems/insights/right-sizing-models}
}Disclosure
Cited: the routing, distillation, quantization, caching and tokenization results, and the list prices and residency options, which we read on the vendors' own pages on 14 October 2026. Ours: the cost arithmetic in sections 3 and 4, the calculator, Table 3, the router in Figure 3 and the testing procedure in section 7, which describe our approach and are not measured results. Illustrative: the inputs in Table 3, the worked monthly bills and the log line in section 6.


