> If copying user tokens was the bottle neck, batching would not achieve any speed up.

Reality is more complex. As context length grows your KV cache becomes large and will begin to dominate your total FLOPs (and hence bytes loaded). The issue with KV cache is you cannot batch it because only one user can use it, unlike static layer weights where you can reuse them across multiple users.

Emerging sparse attention techniques can greatly relieve this issue though the extent to which frontier labs deploy them is uncertain. Deepseek v3.2 uses sparse attention though I don't know off hand how much this reduces KV cache FLOPs and associated memory bandwidth.