Cloud or on-premises?

Choosing a model and choosing where to run it are separate decisions.

Cloud API: the provider runs the model. Fast setup, less operational work. Review data terms, retention, region and cost.

Private cloud: your environment, more control over networks and data, option to host weights. You still own capacity, security and operations.

On-premises: the model runs on your hardware. Local control, can work offline. Requires hardware, skills and model maintenance.

Hybrid works. Open weights can run in the cloud or locally, and cloud does not automatically mean training on your data. GDPR requires appropriate agreements, processing and safeguards, not a particular location.

source: perspectives/cloud-or-on-premises updated 2026-10-21 reviewed by Jesper Andersen markdown permalink