What are startups learning from building cost-effective agents with GPT-5.6? We
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Why it matters
Model tiering, programmatic tool useA model's ability to call external functions — run code, search the web, edit files — instead of only generating text.Full definition →, and retained reasoning with context compactionSummarizing an agent's earlier conversation to free room in the context window so a long session can keep going.Full definition → are producing order-of-magnitude cost differences on the same workloads — with published numbers you can check your own AI agentAn AI system that doesn't just answer once but works toward a goal in a loop — taking actions, reading the results, and deciding what to do next.Full definition → stack against.
Terms in this piece · Glossary
tool use — A model's ability to call external functions — run code, search the web, edit files — instead of only generating text.
token — The chunk of text a model reads and writes in — roughly three-quarters of a word — and the unit AI usage is billed in.
context compaction — Summarizing an agent's earlier conversation to free room in the context window so a long session can keep going.
AI agent — An AI system that doesn't just answer once but works toward a goal in a loop — taking actions, reading the results, and deciding what to do next.
