How to Compress Your Prompts and Reduce LLM Costs

LLMLingua is a Microsoft library that compresses prompts before sending them to large language models, achieving up to 20x compression while maintaining accuracy. The tool uses smaller models like GPT-2 to identify and remove non-essential tokens, reducing API costs and latency. The tutorial covers basic implementation, advanced variants like LongLLMLingua for massive inputs and LLMLingua-2 for faster processing, structured compression for controlled optimization, and integration with frameworks like LangChain and LlamaIndex for RAG systems.