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Self-hosted inference

← All terms · Local models and inference

Also called On-premise AI, Local deployment

The practice of running and managing AI models on your own servers or local hardware, rather than sending data to external providers like OpenAI.

What it is

Self-hosted inference involves downloading open-weight models and running them using engines like vLLM. Organizations do this to maintain strict data sovereignty, avoid vendor lock-in, and bypass the unpredictable rate limits and latency fluctuations of public AI APIs.

When you would use it

You mandate self-hosted inference when handling highly sensitive medical, financial, or defense data that legally cannot be transmitted to third-party cloud AI providers.

Common operations

  • Deploying a proprietary Llama model securely within a corporate firewall.
  • Ensuring zero customer data leaves the internal network.

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