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Private AI: when should you run models yourself?

Hosted APIs are fast to start with. Self-hosted models give you control. A practical framework for choosing.

Every AI project eventually asks the same question: call a hosted model, or run one on our own infrastructure? The honest answer is that most teams need both.

Choose hosted when

You need the strongest reasoning available, your data can leave your environment under a proper agreement, and your volume is still uncertain. Hosted APIs let you validate the product before investing in infrastructure.

Choose private when

Data must stay on-premise for legal or contractual reasons, the task is narrow and repeated at high volume, or latency and cost predictability matter more than peak capability. Smaller open models, well-evaluated, often do these jobs well.

Design for switching

Put a thin model layer between your product and any provider, and keep an evaluation set for each task. Then the hosted-versus-private decision becomes a measurement, not a debate.

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