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1Z0-1127-25 OCI Generative AI Service Practice Question

An organization wants to use OCI Generative AI for a high-volume summarization workload. They estimate 10 million tokens per month and need consistent low latency. Which pricing model is most cost-effective?

Answer choices

Why each option matters

Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.

Correct answer & explanation

Provision a Dedicated AI Cluster with model units

On-demand pricing can be expensive at high volumes. Dedicated clusters offer predictable cost per model unit and low-latency dedicated inference, making them more cost-effective for high-volume, latency-sensitive workloads. Pay-as-you-go (on-demand) is suitable for low or variable usage.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Use the free tier

    Why it's wrong here

    Free tier has limited tokens and cannot sustain 10M tokens.

  • Use OCI Data Science notebook sessions

    Why it's wrong here

    Notebooks are for development, not production summarization workloads.

  • On-demand token-based pricing

    Why it's wrong here

    At 10M tokens per month, on-demand costs may exceed dedicated cluster pricing, and latency is not guaranteed.

  • Provision a Dedicated AI Cluster with model units

    Why this is correct

    Dedicated clusters provide consistent low latency and predictable cost, better for high-volume workloads.

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