Self-hosted Model
An arrangement in which an enterprise deploys open-source large models on its own servers or private cloud so that data does not leave the internal network. Its advantage is the lowest compliance risk; the costs include GPU expense, inference optimization, operations monitoring, and the need for specialized personnel.
Timeline (last 90 days)
If a customer has signed data processing terms, sending records to a model vendor may or may not be covered; this must be clarified before building, and when not covered, options include zero-retention vendor terms, specific processing regions, self-hosted models, and stripping sensitive fields before calls.
The three approaches of self-hosted models, aggregated data, and simple deletion are essentially trade-offs among the triangle of privacy, cost, and usability, and there is currently no free option that wins on all fronts.
When using self-hosted models, no data ever leaves the user's own infrastructure.
In GPU inference scenarios, the actual cost per token equals the monthly fixed cost divided by the total number of tokens processed per month, and utilization rate is the core variable that determines whether self-hosting is cost-effective.
All Facts (4)
If a customer has signed data processing terms, sending records to a model vendor may or may not be covered; this must be clarified before building, and when not covered, options include zero-retention vendor terms, specific processing regions, self-hosted models, and stripping sensitive fields before calls.
50%UnverifiedThe three approaches of self-hosted models, aggregated data, and simple deletion are essentially trade-offs among the triangle of privacy, cost, and usability, and there is currently no free option that wins on all fronts.
50%UnverifiedWhen using self-hosted models, no data ever leaves the user's own infrastructure.
50%UnverifiedIn GPU inference scenarios, the actual cost per token equals the monthly fixed cost divided by the total number of tokens processed per month, and utilization rate is the core variable that determines whether self-hosting is cost-effective.
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