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Hy3: self-host or API?

Self-hosting

Derived (an estimate)

Estimate. The API is cheaper below 4,678 million tokens a day. Above that, self-hosting wins only if the configuration is busy at least 90% of the time, and only at our higher throughput estimates; at our lowest estimate, even constant use would not pay off.

At 50% utilization · Cheapest API offer: $0.115 per million tokens at NanoGPT (3:1 input:output mix)

Hardware rental only: the hourly price the provider publishes for the machine. It does not count the engineering to deploy and run the model, monitoring, redundancy, start-up time, or storage and network costs billed separately.

How it is calculated

Break-even volume
4,678.43 million tokens a day
Throughput self-hosting needs
108,297 tokens per second
At 50% utilization
Throughput self-hosting needs
54,149 tokens per second
If busy all the time

At least this many input plus output tokens per second, all GPUs together, while serving.

What published figures show

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Instead of tokens per day: the three fields go together, and your own input:output mix is used.

Rented configuration

8 x A100 SXM 80GB at Lambda

$535.68 a day · $22.32 an hour · Guaranteed · 640 GB of GPU memory · fp8

Cheapest configuration whose weights fit: 8 x RTX PRO 6000 96GB at CoreWeave, $480.00 a day

Checked Oct 31, 2026 Price page at the provider (opens in a new tab)

Calculation detail

Throughput scenarios

ScenarioTokens per secondUsable capacity (million tokens a day)Break-even utilizationSelf-hosted cost per million tokensAgainst the cheapest API offer
Prudent 10,395.6 449.09 Never (above 100%) $1.19 Dearer
Median 25,989 1,122.73 Never (above 100%) $0.477 Dearer
Optimistic 60,483.6 2,612.89 89.5% $0.205 Dearer

Cheapest of 10 current standard offers, promotions, unstable prices, off-peak prices without published hours and unverified prices far below those of the other providers excluded Checked Oct 31, 2026

Assumptions

  • same architecture type, scaled by memory bandwidth and active weights (x1.1)
  • Selected over the cheapest configuration (RTX PRO 6000 96GB) because its throughput is derived (an estimate); it costs 11.6% more per hour, within our 25% price tolerance.
  • Hardware rental only: the hourly price the provider publishes for the machine. It does not count the engineering to deploy and run the model, monitoring, redundancy, start-up time, or storage and network costs billed separately.
  • Configuration: we pick the cheapest one whose weights fit. If a configuration costing up to 25% more has a measured throughput, we pick it instead; failing that, one with a derived throughput; failing that, one with a published lower bound that settles the verdict; among equals, the cheaper. A configuration whose throughput is only a wide estimate is never preferred over the cheapest. This is our rule, not a technical requirement.
  • Quantization fp8; guaranteed tier prices as published by the provider; utilization 50%.
  • Published figures are generally peak throughput measured at high concurrency; an interactive service with latency targets sustains less.
  • Throughput is aggregate (input and output tokens, 3:1). Published figures in generated tokens are converted with a prefill/generation speed ratio of 3 (prudent), 5 (median) and 8 (optimistic). We treat a published output figure as if the GPUs only generated tokens, ignoring that the benchmark also read prompts: this understates the throughput of the whole configuration, which is the cautious side for self-hosting.
  • Break-even = daily GPU cost / API price per million tokens (4,678 million tokens a day). Self-hosting is cheaper only if the average utilization you can sustain exceeds break-even / raw capacity (the break-even utilization of each scenario), whatever the number of GPUs.

Same answer as JSON