Self-hosting DeepSeek

Self-hosting is not cheaper and it is not better. It solves specific problems. Start by working out which one you have.

Three questions first

1. Can your data leave your network?
No → you have to self-host, whatever it costs.
Yes → run the break-even numbers. Most teams find the API cheaper.

2. How much do you actually call it?
Under a few hundred thousand tokens a day → the API almost always wins.
Hundreds of millions a day → self-hosting may pay off, if utilisation stays high.

3. How big a model do you need?
Classification, extraction, translation → small models (7B–32B) run locally.
Complex reasoning, long context → you need the big model, and it will not fit on one machine.

Four ways to deploy

ApproachBest forEffortThroughput
OllamaTrying it out, small teamsVery lowMedium
llama.cppSingle machine, CPU+GPU mixLowMedium
vLLMProduction, many concurrent usersHighHigh
Cloud GPUShort peaks, no hardwareLowHigh

Two calculators

Common misconception: "self-hosting is cheaper" usually is not true. A $2,000 GPU amortised over three years is about $55/month, before electricity and maintenance. The same money buys roughly 370 million Flash input tokens at off-peak rates.

Read more

Choosing a quantization · Ollama setup · llama.cpp setup · Hardware guide · The real cost of self-hosting