Running AI Models on Your Own Infrastructure

When a private language-model server makes sense, which hardware it needs and what it costs.

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Questions from first calls

Concise, dependable answers

01
Question

What is a private LLM server?

A private LLM server runs a language model on owned or rented hardware instead of using a provider like OpenAI or Anthropic. Requests do not leave the local environment. This addresses data protection issues but shifts e...

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03
Question

Cloud AI or Own Server – Which is Cheaper?

For low and medium volumes, the cloud is almost always cheaper because you only pay for actual usage. An own server only pays off with consistently high utilization – and only if operational costs and personnel are taken...

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04
Question

How to Run a Language Model In-House?

For beginners and individual users, Ollama is suitable – easy to set up, runs on a desktop computer. For productive multi-user operation, vLLM is common as it batches requests and thus serves significantly more simultane...

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05
Question

How to Keep Your Own AI Server Up to Date?

With a fixed rhythm for three things: system security updates, updating the software in use, and – less frequently – a model change. The model change is the most labor-intensive part because it cannot be evaluated withou...

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06
Question

How to Secure Your Own AI Server?

Do not expose it directly to the internet. A model server typically does not come with authentication by default – anyone who knows the address can use it. Necessary measures include: access only from the internal networ...

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07
Question

When is it worth renting graphics performance?

In cases of uneven load and during the testing phase, almost always. Renting is cost-effective as long as utilization fluctuates or is unclear – purchase only when there is consistently high, even utilization. As a rough...

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09
Question

When is Fine-Tuning more sensible than RAG?

RAG is particularly suitable for variable knowledge and verifiable answers; Fine-Tuning is more appropriate for stable behavior, technical language, or a fixed output format. New facts alone are rarely a good reason for...

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12
Question

How to Log AI Requests Compliantly?

Only what is necessary for operation, security, and proof is logged: time, pseudonymous user ID, model and prompt version, status, token counts, and correlation ID. Complete prompts and responses are excluded from the lo...

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20
Question

How to Size GPU Memory for a Specific Model?

The sizing of GPU memory for a model depends on several factors, including the size of the model, the batch size, and the type of data processing. First, the number of parameters in the model should be determined, as eac...

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35
Question

How to Roll Back After a Failed Model Update?

A rollback after a failed model update requires careful planning and execution. First, a backup of the previous model should be available to ensure a smooth return. The rollback procedure includes stopping the current mo...

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37
Question

How to Update Models Without Long Downtime?

Updating models without long downtime requires careful planning and the use of appropriate techniques. A common method is Blue-Green Deployment, which uses two identical production environments. While one environment is...

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