Auditing Pay-Per-Token in Large Language Models
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Abstract (arXiv)
Millions of users rely on a market of cloud-based services to obtain access to state-of-the-art large language models. However, it has been very recently shown that the de facto pay-per-token pricing mechanism used by providers creates a financial incentive for them to strategize and misreport the (number of) tokens a model used to generate an output. In this paper, we develop an auditing framework based on martingale theory that enables a trusted third-party auditor who sequentially queries a provider to detect token misreporting. Crucially, we show that our framework is guaranteed to always detect token misreporting, regardless of the provider's (mis-)reporting policy, and not falsely flag a faithful provider as unfaithful with high probability. To validate our auditing framework, we conduct experiments across a wide range of (mis-)reporting policies using several large language models from the textttLlama, textttGemma and textttMinistral families, and input prompts from a popular crowdsourced benchmarking platform. The results show that our framework detects an unfaithful provider after observing fewer than ~ 70 reported outputs, while maintaining the probability of falsely flagging a faithful provider below α = 0.05.
Key facts. Cited by 4 papers in the map (data through 14 Oct 2026). Builds on 35 of its 50 references that are in the map. First posted on arXiv 5 Oct 2025.
Builds on
35 of 50 references.
References · 35
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23 more
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Built on by
Citing papers per year: 2026: 4.
4 papers.
- 2026Computational Arbitrage in AI Model Marketscited by 1
- 2026Token Inflation: How Dishonest Providers Can Overcharge for Large Language Model Usagecited by 1
- 2026Incentive Aware AI Regulations: A Credal Characterisationcited by 0
- 2026Strategic Self-Consistencycited by 0
- 2026Strategic Self-Consistency24 Sep 2026
- 2026Token Inflation: How Dishonest Providers Can Overcharge for Large Language Model Usage28 May 2026
- 2026Computational Arbitrage in AI Model Markets23 Mar 2026
- 2026Incentive Aware AI Regulations: A Credal Characterisation5 Mar 2026