When does it make sense to build your own AI infrastructure instead of relying on APIs?
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As my app grows AI API bills are becoming harder to ignore. Self-hosting open-source models like Llama seems like a good way to control costs but the more I look into it the more hidden expenses I find. GPU servers idle time maintenance and model optimization can quickly add up. There’s also the risk of sacrificing response quality just to save money. I’m trying to figure out whether owning the infrastructure is actually worth the extra complexity.
For developers who’ve tried both approaches what made you switch and did self-hosting really save money in the long run?
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There is a middle-ground. You can create a strategy where the more mundane tasks would be done by cheaper models. I think self-hosting and initial investment in hardware could be worth it if you actually build a lot of stuff. You know, like a full-electric vehicle. If you drive a lot, you will at some point overcome the bigger initial investment in buying the car.