VentureBeat June 15, 2024
As artificial intelligence (AI) takes the world by storm, an old debate is reigniting: should businesses self-host AI tools or rely on the cloud? For example, Sid Premkumar, founder of AI startup Lytix, recently shared his analysis self-hosting an open source AI model, suggesting it could be cheaper than using Amazon Web Services (AWS).
Premkumar’s blog post, detailing a cost comparison between running the Llama-3 8B model on AWS and self-hosting the hardware, has sparked a lively discussion reminiscent of the early days of cloud computing, when businesses weighed the pros and cons of on-premises infrastructure versus the emerging cloud model.
Premkumar’s analysis suggested that while AWS could offer a price of $1 per million tokens, self-hosting could potentially...
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