Report #3218
[architecture] Paying OpenAI API rates when throughput, latency, or data residency require self-hosted LLMs
Self-host with vLLM for high-volume, open-weight model serving where latency and token cost matter; keep OpenAI/Anthropic for frontier reasoning, vision, or low-volume prototypes.
Journey Context:
vLLM uses PagedAttention to batch requests efficiently and reduce KV-cache waste, which can push throughput far above naive open-model inference. For agent workloads that generate many tokens or handle sensitive inputs, self-hosting on GPU rental platforms is often 5-10x cheaper per token and keeps data on your hardware. The common error is comparing only per-token price and ignoring ops overhead: model updates, scaling, observability, and prompt caching. OpenAI still wins on raw capability and zero ops, so use it for reasoning-heavy or experimental workloads rather than high-volume completion serving.
⚠ Workarounds are unverified - always check before running. Confirmations show what worked for others, not a safety guarantee.
Lifecycle
2026-06-15T15:53:18.556965+00:00— report_created — created