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Comparison · Infrastructure

Own infrastructure or US API: what fits whom?

US cloud APIs offer an immediate start without hardware expense, but require transmitting sensitive data to external data centers. Dedicated on-premise AI infrastructure processes data completely inside your network, providing predictable costs and full model control, but requires proactive operations. The deciding factor is the sensitivity of your data.

CriterionPublic Cloud APIOn-Premise / Own Servers
Data LocationUS data centers or hyperscalersOwn data center or dedicated EU servers
Privacy & ComplianceDPA required, must verify model training opt-outsGDPR-compliant by design, no data leakage
Cost ModelUsage-based (tokens), scales linearly with queriesPredictable hardware and operational costs, flat rate
Model ControlForced model updates, silent version shiftsFree model choice (e.g. Llama, Mistral), pinned versions
Adoption & OperationsZero hardware setup, immediate API accessSetup and monitoring required, operated by PRCS
Trade SecretsHigh risk for confidential contracts, CAD and financialsComplete data sovereignty, ideal for professional secrecy

When a cloud API is the right choice

For general translations, summarizing public articles, or brainstorming without business references, a cloud API is unbeatable in price and ready instantly. No one needs to buy dedicated servers for non-critical standard tasks.

When on-premise becomes indispensable

As soon as customer data, engineering blueprints, recipes, financial balance sheets, or HR records are processed, strict GDPR and EU AI Act requirements apply. Self-hosting protects against data leaks and unapproved third-party model training.

The real cost difference at scale

In the prototype phase, APIs seem inexpensive. But once automated pipelines process hundreds of thousands of documents or tickets monthly, token-based bills skyrocket. Own infrastructure carries fixed baseline costs: whether the model handles 100 or 10,000 files a day does not alter your operating cost.

When each option fits

Public cloud APIs suit non-critical, generic tasks without company data. Dedicated infrastructure is the standard for mission-critical processes, sensitive customer records, and scalable independence.

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