Best first move
API pathOptimize model mix, prompts, caching, and provider pricing.
Self-hosted pathProfile stable workloads and prove utilization before buying capacity.
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Comparison
Self-hosted LLMs vs API pricing.
Private inference can save real money, but it should be a measured decision. Most teams should prove routing and caching wins first.
Hidden cost
API pathRunaway token usage, shadow tools, and overuse of frontier models.
Self-hosted pathOps burden, reliability, staffing, utilization, and model maintenance.
When it wins
API pathVariable demand, frontier quality needs, fast experimentation.
Self-hosted pathHigh-volume stable workloads that smaller models can handle well.