Services
Private AI Setup Services: What They Cover and Cost
Checked 2026-10-31
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Private AI setup services put AI models where you control the data: your own servers, your cloud account or a dedicated managed environment. A good project covers model choice, GPU sizing, a serving stack, access control, logging, and testing on your own tasks. The directory is open for listings and names no provider yet, so you can request quotes through one brief.
What "private" can mean
Four different arrangements all get called private. They differ in who holds the data and who does the work.
Option | Who runs the hardware | Who sees your prompts | Work for you |
|---|---|---|---|
Open weights on your own servers | You or your provider, on your hardware | Only you | Most |
Open weights in your cloud account | You or your provider, on rented GPUs in your account | You and the cloud provider's infrastructure | Medium |
A vendor's private deployment | The vendor's software in your cloud or data centre | You | Medium, with vendor support |
A hosted open-model API with zero retention | The host | The host, with a stated zero-retention default | Least |
Cohere, for example, sells private deployment through your virtual private cloud, on premises, or in a dedicated managed environment called Model Vault. Fireworks AI states that it has zero data retention by default for open models. Both are different points on the same line. For the host side see Cohere and Fireworks AI, and for the wider picture private AI for teams, self-hosted AI and on-premise AI.
Be clear about the reason you want private. "Our data is sensitive" can be met by several of these. "Our regulator requires data in our building" can only be met by the first. "We want to avoid per-token fees" is a cost question, and the answer depends on volume.
What a good engagement includes
Phase | What happens | What you should receive |
|---|---|---|
Requirements | Data classes, users, peak concurrency, latency needs, regulatory rules | A written requirements sheet |
Model selection | Candidates tested on your tasks, licences read | A shortlist with test results and licence notes |
Sizing | Hardware chosen from model size and expected load | A sizing note with the arithmetic shown |
Build | Servers or cloud environment, serving software, networking | A running environment in your account |
Access control | Sign-in, roles, keys, network limits | Documented access design |
Application layer | Chat interface, API gateway, retrieval over your documents | Working interfaces for your users |
Logging and monitoring | Usage, errors, GPU health, cost | Dashboards and alerts |
Evaluation | A test set from your tasks, run on each model and each update | The set and the scores |
Operations | Update, patch, backup, rotate keys | A runbook and a named owner |
Handover | Accounts, configuration as code, documents | Everything in your name |
Model selection is a test, not a vote. Open models differ in quality, size and licence, and the leaderboards do not know your tasks. A provider should run your cases through two or three candidates and show you the results. Our lists help you start: open source LLM, best open source LLM for coding, and the model entries such as Qwen, DeepSeek, Mistral and gpt-oss.
Read the licence. Open weights are not all alike. Apache 2.0 and MIT are permissive. Mistral's Large 4 uses a modified MIT licence that requires a separate commercial licence for anyone running a Model-as-a-Service business. Meta's Muse Spark Open asks every product that uses it to show "Built with Muse Spark Open". Cohere's older Command A weights are non-commercial only (CC-BY-NC 4.0), while Command A+ is Apache 2.0. A provider who has not read the licence of the model they propose has skipped a legal step. See Meta Llama API and Mistral AI for the clauses.
Sizing: how a provider should show their working
GPU sizing is where proposals are most often hand-waved. Ask for the arithmetic. Three public examples show the scale.
Model | What the vendor states | Meaning |
|---|---|---|
gpt-oss-120b | OpenAI says it fits a single 80 GB GPU such as an H100, because the weights are post-trained in MXFP4 | One data-centre GPU can host it |
gpt-oss-20b | Runs within 16 GB of memory | Fits a small server |
Cohere Command A+ | Example minimum GPUs on its card: 4-bit on one B200 or two H100s, 8-bit on two B200s or four H100s, 16-bit on four B200s or eight H100s | A multi-GPU server |
Mistral Large 4 | About 1.06 TB of weights, or 610 GB in an NVFP4 build | A multi-GPU server, and a big one |
Those are minimums for holding the weights, not for serving many users. Serving needs memory for the context cache, and throughput depends on concurrency. A sizing note should state the model, the quantisation, the context length, the expected number of simultaneous users, and the throughput target, and then show how the hardware meets them. If a provider says "one server is plenty" without those inputs, ask for them.
What drives the cost
We quote no market rates. The drivers are these, and you can estimate the first from public prices.
Driver | How it behaves |
|---|---|
GPU hours | Rented by the hour, or bought. Rented GPUs bill whether or not they are busy |
Engineering | Setup, serving, security, interfaces, evaluation |
Operations | Updates, patches, monitoring, on-call |
Model licence | Free for permissive licences, a negotiation for some |
Networking and storage | Private connectivity, backups, document stores |
Redundancy | Two servers for uptime cost twice as much |
Growth | More users or longer contexts mean more GPUs |
For the GPU part, use published hourly rates. As checked on 2026-10-31, Runpod lists an H100 SXM at $2.69 an hour in its Community cloud and $3.99 in its Secure cloud, and a B200 at $5.98 and $7.99. Lambda lists one H100 SXM at $4.29 an hour, and Modal about $3.95. A server left on for a 730-hour month at $3.99 an hour is $2,912.70 for one GPU, before any engineering. That arithmetic is ours, and it shows why a rented GPU that sits idle is the most common waste. Compare it with the per-token price of a hosted open model, for example gpt-oss-120b at $0.15 in and $0.60 out per million tokens on Groq. At those prices, $2,912.70 buys about 19 billion input tokens, or about 4.9 billion output tokens, so a rented GPU only wins when your volume is high and steady, or when data rules leave no choice. See Runpod, Modal and Lambda Cloud, and the comparison cloud vs self-hosted AI.
A phased path that limits risk
You do not have to commit to hardware on day one. A staged project lets the evidence decide, and a good provider will propose something like this.
Stage | What you do | What you learn |
|---|---|---|
Hosted trial | Run your test cases on open models through a hosted API with a stated retention policy, using non-sensitive data | Whether open models are good enough for your tasks |
Rented GPU pilot | Serve the best candidate on a rented GPU in your cloud account for a few weeks | Real latency, real concurrency, real operating effort |
Decide | Compare quality, cost and effort against the hosted option | Whether private is worth it |
Production | Size for load, add redundancy, security and monitoring | A system you can run |
Optional purchase | Buy hardware only if usage is steady and high | Whether owning beats renting |
Stage one is where many projects end. If a zero-retention hosted API passes your security review, you have your answer at a fraction of the effort. If it does not, you have a test set and a model shortlist for stage two, which saves the provider's time and your money.
Security design for a private deployment
Running the model yourself moves the security job to you. A provider should design these, and you should ask to see each one.
Area | What to expect |
|---|---|
Network | The model server is not reachable from the internet. Access goes through a gateway on a private network or behind a login |
Identity | Users sign in with your identity provider, and roles decide who can use which model |
Keys | API keys per application, rotated on a schedule, never shared |
Data stores | Document indexes for retrieval are encrypted, access-controlled and sized for the data classes in scope |
Logging | Requests are logged with the caller and model. Whether prompts are logged is a decision, since logs become sensitive data |
Updates | A process for patching the operating system, drivers and serving software |
Model provenance | Weights downloaded from the official source, checked, and stored in your own repository |
Backups | Configuration, indexes and logs backed up, with a restore test |
Model provenance deserves a note. Several large model repositories are gated and need approval before download, and a build that pulls from a public hub on every restart will fail or fetch something unexpected. Keep a verified copy of the weights in your own storage once the licence is accepted.
Where private AI disappoints
Honest providers will tell you where the trade-offs bite. We would raise four points ourselves.
- Quality. An open model that fits your hardware is often smaller than the hosted model you compared against. Test on your tasks, and accept a different tool for a different job if needed.
- Operations. Someone has to own updates and outages. A private system with no owner decays.
- Cost at low volume. A GPU bills while idle. Below steady, high usage, per-token pricing wins.
- Speed of change. New models arrive monthly. A private stack should make swapping a model a routine task, not a project.
None of these is a reason to avoid private AI. They are reasons to size the project honestly and to start with the light option.
How to judge a provider
We name no provider and rank none. Use this on anyone.
What to look at | A good sign | A weak sign |
|---|---|---|
Requirements | They ask about data classes, users and peak load first | They start with a GPU brand |
Sizing | The arithmetic is shown, with concurrency | "One box will do" |
Model testing | They run your cases on candidates | They pick the biggest model |
Licence | They read and summarise it | They have not checked |
Security | Network limits, roles, key rotation, logging are designed | Open ports and one shared login |
Operations | A runbook, update policy, named owner | "It just runs" |
Evaluation | A test set that is re-run after each change | No tests |
Honesty about trade-offs | They tell you when a hosted API is enough | Private is always the answer |
Ownership | Configuration as code in your repository | Their servers, their scripts |
The honesty row matters most. A provider who sells private AI to every client is selling a product, not advice. For many teams a hosted open-model API with zero retention, or a vendor's managed vault, is private enough and far less work.
Red flags
- No sizing evidence. A hardware quote with no model, context or concurrency numbers.
- "Unlimited" claims. A server has limits, and a provider should state them.
- Skipped licence review. A legal problem waiting to happen.
- No monitoring. You will learn about failures from users.
- No update plan. Models, drivers and serving software all change, and security patches matter.
- Shared credentials. One login for everyone is neither private nor auditable.
- No quality test. A smaller private model can be worse than the hosted one you left, and only your tests will show it.
- A fixed hardware purchase before testing. Rent first, buy later.
Questions to ask
Topic | Question |
|---|---|
Fit | Why is private the right choice here, and what would a hosted option miss? |
Models | Which models will you test, and on what cases? |
Licence | What does each model's licence allow for our use? |
Sizing | What load did you assume, and how does the hardware meet it? |
Security | How are access, keys, logs and network limits handled? |
Quality | How will we know it is as good as the hosted alternative? |
Operations | Who patches and updates, and how often? |
Cost | What are the monthly running costs at our load, and at double it? |
Ownership | Who owns the configuration, the evaluation set and the accounts? |
Exit | If we leave, can we run it ourselves? |
How to request quotes here
The listings under /services/ are open, and no provider is listed yet. When providers join, paid placement will be labelled and will not change ratings or order.
- Write a brief: the data classes, the users, the tasks, peak load, regulatory rules and where it must run.
- State your constraint: "data stays in our building" and "avoid per-token fees" lead to different answers.
- Send it once through get quotes. The plan is to match a brief to up to three providers.
- Compare sizing, testing and operations first, and price last.
Providers can see claim your listing and plans and sponsored slots.
Our take
Private AI is a family of options, and the first job of any provider is to find the lightest one that meets your rule. The model quality gap between open and closed has narrowed in some areas, and our model pages show where, but the hardware and the operations are real and recurring work. Judge a provider on whether they show their sizing, test on your tasks, read the licence and plan for the day after launch.
We have not tested or ranked any provider. Hardware figures come from the model cards and price pages named above, as read on 2026-10-31, and the arithmetic is shown.
Related pages
Get quotes, private AI for teams, GPU requirements for LLMs, vLLM, Ollama.
Questions
What are private AI setup services?
A provider sets up AI models that run where you control the data: your own servers, your cloud account or a dedicated managed environment. The work covers model choice, hardware sizing, serving software, access control, logging and testing on your tasks.
Is private AI always self-hosted?
No. The options range from open weights on your own GPUs, to a vendor's private deployment in your cloud account, to a dedicated managed environment, to a hosted open-model API with a zero-retention default. Each moves a different amount of control and work.
How much does a private AI setup cost?
The drivers are GPUs, the engineering to serve and secure them, the model licence, and ongoing operations. We do not quote market rates. We show how to compute the GPU part from public hourly prices.
Are providers listed here?
Not yet. The directory is open for listings and names no provider. You can send one brief through the quote form.
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