Are you overpaying for AI because of your language? If you’re building LLM applications in Spanish, Hindi, or Greek, you could be spending up to 6 times more than English users for the exact same functionality.

This blog insipred from the research paper Do All Languages Cost the Same? Tokenization in the Era of Commercial Language Models

The Hidden Tokenization Tax

When you send text to GPT-4, Claude, or Gemini, your input gets broken into tokens chunks roughly 3-4 characters long in English. You pay per token for both input and output.

The shocking truth: The same sentence costs wildly different amounts depending on your language.

Real Example: “Hello, my name is Sarah”

LanguageTokens NeededCost vs EnglishAnnual Cost (10K msgs/day)
English7 tokens1.0x baseline$16,425
Spanish11 tokens1.5x more$24,638 (+$8,213)
Hindi35 tokens5.0x more$82,125 (+$65,700)
Greek42 tokens6.0x more$98,550 (+$82,125)

That’s an $82,000 annual difference for the exact same chatbot purely because of language.

The Complete Language Cost Breakdown

Research from ACL 2023 and recent LLM benchmarks reveals systematic bias in how models tokenize different languages. Here’s what it costs to process 24 major languages:

Tokenization cost comparison across 24 languages showing how many times more expensive each language is compared to English due to tokenization differences

Tokenization cost comparison across 24 languages showing how many times more expensive each language is compared to English due to tokenization differences

Most Efficient Languages (1.0-1.5x English)

  • English: 1.0x (baseline)
  • French: 1.2x
  • Italian: 1.2x
  • Portuguese: 1.3x
  • Spanish: 1.5x

Moderately Expensive (1.6-2.5x)

  • Korean: 1.6x
  • Japanese: 1.8x
  • Chinese (Simplified): 2.0x
  • Arabic: 2.0x
  • Russian: 2.5x

Highly Expensive (3.0-6.0x)

  • Ukrainian: 3.0x
  • Bengali: 4.0x
  • Thai: 4.0x
  • Hindi: 5.0x
  • Tamil: 5.0x
  • Telugu: 5.0x
  • Greek: 6.0x (most expensive)

Why Writing Systems Matter

Comparison of tokenization costs and efficiency across different writing systems, showing why Latin-based languages are most cost-effective for LLM applications

Comparison of tokenization costs and efficiency across different writing systems, showing why Latin-based languages are most cost-effective for LLM applications

The script your language uses creates dramatic efficiency gaps:

  • Latin script: 1.4x average (73.5% efficient)
  • Hangul (Korean): 1.6x (63% efficient)
  • Han/Japanese: 1.8-2.0x (50-56% efficient)
  • Cyrillic: 2.75x average (36.5% efficient)
  • Indic scripts: 4-5x average (20% efficient)
  • Greek: 6.0x (17% efficient—worst)

Why This Inequality Exists

1. Training Data Bias

GPT-4, Claude, and Gemini are trained on English-dominant datasets. The Common Crawl corpus shows stark imbalance:

  • ~60% English
  • ~10-15% combined for Spanish/French/German
  • <5% for most other languages

Tokenizers learn to compress what they see most. English gets ultra-efficient encoding; everything else is treated as “foreign.”

2. Morphological Complexity

Languages with rich morphology generate far more word variations

  • English: “run” → runs, running, ran (4 forms)
  • Turkish: Single root → 50+ forms with suffixes
  • Arabic: Root system → thousands of variations
  • Hindi: Complex verb conjugations with gender/number/tense

Tokenizers can’t learn compact patterns for high-variation, low-data languages.

3. Unicode Encoding Overhead

Different scripts need different byte counts:

  • Latin: 1 byte per character
  • Cyrillic: 2 bytes per character
  • Devanagari/Tamil: 3+ bytes per character

More bytes = more tokens = higher cost—even for the same semantic content.

Real-World Cost Impact

Here’s what tokenization inequality means for actual business applications:

Customer Support Chatbot (10,000 messages/day)

  • English: $16,425/year
  • Spanish: $24,638/year (+50%, +$8,213)
  • Hindi: $82,125/year (+400%, +$65,700)

Content Generation Platform (1M words/month)

  • English: $14,400/year
  • Spanish: $21,600/year
  • Hindi: $72,000/year

Document Translation Service (100K words/day)

  • English: $65,700/year
  • Spanish: $98,550/year (+$32,850)
  • Hindi: $328,500/year (+$262,800)

Code Assistant (50K queries/day)

  • English: $91,250/year
  • Spanish: $136,875/year
  • Hindi: $456,250/year (+$365,000)

Bottom line: A company serving Hindi users pays $262,800-$365,000 more annually than an identical English service.

The Socioeconomic Dimension

Research reveals a disturbing -0.5 correlation between a country’s Human Development Index and LLM tokenization cost.

Translation: Less developed countries often speak languages that cost more to process.

  • Users in developing nations pay premium rates
  • Communities with fewer resources face higher AI barriers
  • This creates “double unfairness” in AI democratization

Example: A startup in India building a Hindi customer service bot pays 5x more than a US competitor despite likely having far less funding.

The Future of Fair AI

Language should never determine how much intelligence costs. Yet today, the world’s most spoken tongues pay a silent premium just to access the same models. Fixing this isn’t about optimization it’s about fairness. Until every language is tokenized equally, AI remains fluent in inequality.