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Self-hosting is not automatically cheaper because it transfers model serving, patching, capacity planning and incident response to the product team, so the decision should begin with requirements that a managed endpoint cannot meet. https://ai-software-development.net

Even when data residency, custom inference code or strict version control supports that choice, the team still needs a realistic plan for hardware utilization, model updates and degraded service when capacity is exhausted. An open-source model assessment can compare those obligations with the limits of hosted providers.

Before deployment, test the complete application path rather than an isolated model prompt. A self-hosted AI architecture review should include monitoring and access control. The release process must also be reversible.