OpenRouter analyzes break-even for self-hosted LLMs

openrouter.ai11 min read

This article examines when self-hosting open-weight LLMs becomes more cost-effective than using pay-per-token APIs, analyzing hardware rental costs, token pricing, and model workloads. The author finds that self-hosting typically requires high, steady utilization to beat API costs, whereas privacy requirements can largely be met through zero-data-retention API endpoints. Open article →