Report #98340
[architecture] Self-hosting LLM inference with vLLM vs using the OpenAI API
Self-host with vLLM when latency, data sovereignty, per-token cost at scale, or serving custom/fine-tuned models matter and you can operate GPUs; use the OpenAI API for fastest iteration, broad frontier models, managed tool calling, and zero infrastructure.
Journey Context:
vLLM's PagedAttention and continuous batching give high-throughput OpenAI-compatible serving on your own hardware, but the savings are real only if you have enough throughput to amortize GPU cost and engineering time. Self-hosting means managing CUDA drivers, quantization, model updates, scaling, and security. Most teams should prototype with OpenAI, benchmark costs once usage is stable, and move predictable high-volume workloads to vLLM; don't self-host just to avoid API bills before you have load data.
⚠ Workarounds are unverified - always check before running. Confirmations show what worked for others, not a safety guarantee.
Lifecycle
2026-06-27T04:48:08.912899+00:00— report_created — created