Self-Hosted LLM
A self-hosted LLM is a large language model that runs in infrastructure controlled by the organization rather than being used only through a third-party API. That infrastructure may be a private cloud, dedicated GPU cluster, on-premises data center, sovereign environment, or isolated customer deployment. The term describes an operating model, not a specific model family. What matters is control over data flows, runtime configuration, model versions, network access, logging, cost behavior, and governance.
Self-hosting becomes relevant when teams handle sensitive data, face strict compliance requirements, need predictable latency, or want deeper integration with internal systems. It is not automatically cheaper or better: the organization must still solve deployment, monitoring, scaling, security boundaries, evaluation, fallback handling, and model routing. In practice, the strongest architectures are often hybrid. Routine or sensitive workloads can run in a controlled environment, while managed frontier models are reserved for tasks that need the highest reasoning quality.