The Hidden Costs of AI: Why Your Cloud Bill is Exploding

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AI workloads don’t play by the same rules as your average enterprise app, and if you’ve looked at your cloud bill lately, you probably know that already. They have unique demands that make them especially vulnerable to hidden AI storage costs. Think: massive parallel GPU training, nonstop data shuffling, and frequent checkpointing.

The problem? Most cloud pricing models weren’t built for this kind of action. They were designed when workloads were a lot more predictable. So, when you run AI workloads on storage models built by hyperscalers, the costs add up quickly, and often invisibly. 

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Here are five reasons your cloud bill for AI workloads could spiral out of control:

1. Death by API call: Soaring costs in AI training pipelines.

AI workloads are packed with transactions. Every ingest of raw data, training round, inference batch, or logging step triggers API calls—PUTs, GETs, LISTs, and COPYs. If you’re training a foundational model like Deepseek v3 or Llama 2, you could be making millions of small transactions a day just by uploading all the raw data you require for training.

Each transaction might cost a fraction of a cent—but they add up. 

Example: Let’s assume a model needs 1 trillion pretraining tokens. Different data sources contribute varying numbers of tokens per file. For this exercise, let’s assume the following token counts:

  • Web pages: ~1,000 tokens/page (e.g., blog posts, articles)
  • Books: ~100,000 tokens/book (avg. 300 page novel)
  • Code repositories: ~500 tokens/file (e.g., GitHub scripts)
  • News articles: ~800 tokens/article
  • Academic papers: ~5,000 tokens/paper

A typical large language model (LLM) training mix might look like this:

Source% of tokensTokens contributionFiles required (approx.)
Web pages40%400B tokens400M files
Books20%200B tokens2M files
Code15%150B tokens300M files
News articles15%150B tokens187.5M files
Academic papers10%100B tokens20M files
Total100%1T tokens~909.5M files

If you’re ingesting 909.5 million files to AWS S3 at $0.005 per 1,000 PUTs (pricing as of April 2025), then you’d be charged:

  • 909,500,000 ÷ 1,000 = 909,500 units
  • 909,500 × $0.005 = $4,547.50

That’s $4,547.50 in just PUT transaction fees—for just collecting all the data you need for training. And that’s not counting GETs, LISTs, or any other operations that are necessary to support the full AI data pipeline.

2. The small file tax: How small files drive up AI cloud storage costs

Models trained on image slices, text tokens, or time-series data can create millions of small files. These not only trigger excessive API calls, but also suffer from the following: 

  • Some providers bill you by minimum object size (e.g., rounding all small files up to 128KB).
  • Every small object can trigger a full-priced transaction.
  • Frequent access means you’re paying for reads, not just storage.

This mismatch means your dataset of 100 million 10KB files could behave (and cost) like a much larger, high-churn workload.

3. Why cold storage fails for AI data workloads

Deep archive tiers may be cheap upfront, but they’re a poor fit for iterative AI workflows. Need to rehydrate training data to rerun a model? Get ready to wait hours and pay per retrieval. Need to delete? You could get hit with minimum retention penalties, and pay for that data as if you held onto it for 60, 90, or even 180 days. 

AI workflows are iterative. You’re not archiving log files; you’re experimenting, fine-tuning, and reprocessing constantly. Cold storage is rarely compatible with that.

4. Egress fees: The hidden cost of moving AI training data

Egress is a silent killer. It’s the fee you pay every time you move data out of cloud storage. In AI workflows, that’s often necessary for:

  • Sending training data to a GPU cluster.
  • Validating models on a local system.
  • Migrating to another provider.
  • Collaborating with partners across clouds or regions.

These fees scale linearly with data volume, which is a problem when your AI pipeline is pulling terabytes or petabytes per day. 

5. AI data lifecycle rules can backfire

You might set up lifecycle rules to move infrequently accessed data to cheaper tiers—sounds smart, right?

Except:

  • Lifecycle transitions often come with per-object fees.
  • Accessing those objects later triggers retrieval fees, or breaks performance expectations.
  • Deleting or overwriting too early triggers penalties.

And all of this assumes you even know your data’s “temperature” in advance—which, in AI workflows, changes day to day.

Smarter AI Storage

Your AI pipeline isn’t just a compute problem: It’s a data movement and storage orchestration engine. And that’s exactly where traditional cloud pricing models fall short. 

If your cloud bill is blowing up, it’s probably not just because you kicked off another training run. It’s the millions of GET requests, the silent egress charges, and those archive tier retrievals you didn’t plan for.

The good news? Once you know where the hidden costs are, you can start building smarter.

About David Johnson

David Johnson is a Product Marketing Manager at Backblaze, where he specializes in cloud backup and archiving for businesses. With extensive experience building the product marketing function at Vultr, he brings deep knowledge of the cloud infrastructure industry to Backblaze. David's passion for technology means his basement is a mini data center, filled with homelab projects where he spends his free time enhancing his knowledge of the industry and becoming a better informed expert on all things backup and archive. Connect with him on LinkedIn.