On-Prem Models vs DeepSeek API

Teams choose between self-hosted open-weight models and DeepSeek’s API. The right path depends on data residency, engineering capacity, and traffic shape.

When API fits

Low to medium volume, fast time-to-value, and acceptable use of a vendor endpoint with contractual DPA terms. Good for pilots and departmental tools.

When on-prem fits

Strict data-boundary requirements, predictable high volume, or integration with existing GPU clusters. Budget for ops, monitoring, and model updates.

Hybrid pattern

Prototype on API; move only stable, high-volume jobs to self-hosted inference once requirements are clear.

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