171 - AI SERIES: 14 - How to Avoid Massive AI API Costs with Michael Greenberg

🚨MY NEWSLETTER https://nikolas-newsletter-241a64.beehiiv.com/subscribe 🚨Join me, Nik (https://x.com/CoFoundersNik), as I interview Michael Greenberg (https://x.com/@gentoftech), serial entrepreneur and AI guru. Michael shares how he's using AI in his multiple businesses, from ghostwriting to podcast booking.We dive into the world of AI models, discussing which ones Michael uses daily, like Gemini 2.5 Pro and O3 mini high, and why he's moved away from others like GPT 4.0 for most tasks. Learn the critical difference between standard models and powerful reasoning models, and why the latter are essential for business logic, complex problems, and even math.We also unpack the importance of the context window and how models like Gemini excel here. Plus hear a cautionary tale about a $4,000 AI API bill and how they fixed it.Enjoy the conversation!Questions This Episode Answers:What AI models should I use for business tasks?What's the difference between standard and reasoning AI models?Why is the context window important for AI?How can Anthropic's Workbench help me write better prompts?How do I avoid huge AI API costs?__________________________Love it or hate it, I'd love your feedback.Please fill out this brief survey with your opinion or email me at [email protected] with your thoughts.__________________________MY NEWSLETTER: https://nikolas-newsletter-241a64.beehiiv.com/subscribeSpotify: https://tinyurl.com/5avyu98yApple: https://tinyurl.com/bdxbr284YouTube: https://tinyurl.com/nikonomicsYT__________________________This week we covered:00:00 The Cost of AI in Business02:58 Choosing the Right AI Models05:55 Understanding Reasoning Models08:50 The Importance of Context in AI12:12 Future of AI Models15:05 Prompt Engineering and AI Tools18:03 Real-World Applications of AI21:12 Managing AI Costs and Usage