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Self-Hosted LLM vs API Cost: Below $10.5K a Month, an H200 Node Can't Beat the API

This story is from 2026-10-27. It is preserved in the archive; the latest stories are on the live feed.

IBM's CEO told investors last week that open-weight models now run at "anywhere from 25 percent to 10 percent of the token cost of the frontier models" and are "90 percent as effective." According to The Register's write-up of the Q3 call , Arvind Krishna also thinks a useful on-prem AI setup needs…

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  1. 2026-10-27 19:00 · DEV Community — AI
    Self-Hosted LLM vs API Cost: Below $10.5K a Month, an H200 Node Can't Beat the API

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