Is Hosting Your Own LLM Cheaper than OpenAI? Hint: It Could Be

<h1><strong>Open AI Pricing</strong></h1> <p>Open AI charges per token. 750 words are approximately 1000 tokens.</p> <p>The price per token also depends on the model. For e.g.,</p> <ol> <li>GPT-4 (new) costs $0.03 (3 cents) per 1000 tokens</li> <li>GPT-3.5 (older) costs $0.0015 (.15 cents) per 1000 tokens.</li> </ol> <p>Now, let&rsquo;s see this pricing in action to extrapolate monthly costs for a sample application.</p> <p>Take an example of an AI application that writes blog posts for users under 1500 words.</p> <p>That means 1 blog post will cost a maximum of 6 cents using GPT-4 (the better model).</p> <p>If your application is receiving a 1000 requests per day to write blog posts, you are looking at an average&nbsp;<strong>cost of approximately $1,000 per month*</strong></p> <p>Now, let&rsquo;s see how much this would cost hosting your own LLM on AWS.</p> <h1>Host your own LLM Pricing</h1> <p>Server type is the primary cost factor for hosting your own LLM on AWS. Different models require different server types.</p> <p>If we choose the Llama-2 7b (7 billion parameter) model, then we need at least the EC2 g5.2xlarge server instance which costs approximately $850 month.</p> <p><a href="https://ai.plainenglish.io/is-open-ai-cheaper-than-hosting-your-own-llm-lets-find-out-30e861e138f1"><strong>Visit Now</strong></a></p>
Tags: LLM Cheaper