Proof from the product
Real UI snapshot used to anchor the operational workflow described in this article.

Open source LLMs like DeepSeek, Llama, and Mistral offer dramatically lower per-token costs than proprietary APIs — but only if you account for the full cost picture. Self-hosting adds GPU compute, infrastructure management, and scaling costs that are often underestimated. API access through providers like Together AI and Groq offers a middle ground. This guide breaks down the real costs of open source LLM deployment.
Real UI snapshot used to anchor the operational workflow described in this article.

DeepSeek offers some of the lowest API pricing in the market. DeepSeek Chat provides strong general-purpose capabilities at a fraction of GPT-4o pricing. DeepSeek Reasoner adds reasoning capabilities at higher but still competitive prices. The key advantage is cost — teams can often achieve 80-90% of GPT-4o quality at 10-20% of the cost for many use cases.
Self-hosting costs depend on model size and infrastructure: Llama 3 70B requires at least 2x A100 80GB GPUs (~$4-8/hour on cloud). Mistral Large needs similar resources. Smaller models (Llama 3 8B, Mistral Small) run on single GPUs (~$1-3/hour). Factor in: GPU rental, storage, networking, engineering time for deployment, and scaling infrastructure. For low-volume usage, API access is almost always cheaper.
Self-hosting becomes cost-effective when: (1) You process 1M+ tokens per day consistently. (2) You need data privacy (no data leaves your infrastructure). (3) You can keep GPU utilization above 60%. (4) You have engineering capacity for ML infrastructure. For most teams processing under 1M tokens/day, API access through DeepSeek, Together AI, or Groq is significantly cheaper than self-hosting.
API providers for open source models: DeepSeek — lowest pricing, strong quality. Together AI — wide model selection, competitive pricing. Groq — ultra-fast inference via custom hardware. Fireworks AI — optimized serving, good pricing. Each provider offers different speed/cost tradeoffs. Compare actual costs for your workload using token calculators and monitoring tools.
Whether self-hosted or via API, track costs with AI Cost Board: connect API keys for hosted providers, monitor GPU costs for self-hosted deployments, compare per-request costs against proprietary alternatives, and set budget alerts to prevent cost overruns. Multi-provider monitoring shows the true cost picture across all your LLM deployments.
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Open source LLMs offer compelling cost savings, but only with accurate cost tracking. API access is cheapest for most teams. Self-hosting only wins at high scale with dedicated infrastructure teams.