
Most teams start with a hosted LLM API, and for a prototype that is the right call. Then usage grows. Sensitive records start flowing through a third party's servers, the monthly token bill climbs faster than the value it creates, and compliance starts asking questions nobody can answer with a vendor's terms of service.
You also lose control in quieter ways: the model behind the endpoint changes without notice, rate limits appear at the worst moment, and latency is set by someone else's queue. That is usually the point where patching stops working and real infrastructure starts paying for itself.






















