AI & Machine Learning Engineering
Artificial Intelligence is transforming software engineering. As a developer or DevOps engineer today, you need to understand how to build with AI β calling APIs, building RAG systems, deploying models, and monitoring AI in production.
How a Large Language Model Works
Each parameter is a floating point number, adjusted during training on billions of tokens to encode patterns of language, facts, and reasoning. GPT-4 has roughly 1.8 trillion parameters; Claude 3 has hundreds of billions; Llama 3.1 8B has 8 billion β more parameters generally means more capacity to encode nuance, at the cost of more compute to run.
The AI Stack for Engineers
Calling the Anthropic API
Claude Sonnet: $3 per 1M input tokens, $15 per 1M output tokens
1,000 word essay β 1,300 tokens β $0.004 to generate.
For most applications, AI API costs are surprisingly low.
RAG vs Fine-Tuning β When to Use Each
| RAG | Fine-Tuning |
|---|
|---|---|---|
| **Updates knowledge** | Yes β just re-index | No β must retrain |
|---|---|---|
| Private data | Yes | Yes |
| Latency | Slightly higher (retrieval step) | Same as base model |
| Cost | Retrieval infra | Training compute |
| Best for | Current info, citations, Q&A | Style, format, specialized tasks |
For 90% of use cases: Prompt Engineering first β RAG if you need private/current data β Fine-tuning only if still insufficient. Most teams over-engineer this.

