Self-Hosting vs AI Relay Platforms: Doing the Cost Math

The short answer

A relay is convenient because it aggregates many models for you — but it marks up every single call over official pricing. The more you use, the more that markup costs, and the more direct self-hosting pays off.

Where the cost comes from

• Relay markup: official price times 1.2 to 1.5, and opaque.
• Downgrade waste: quality swings cause rework — a hidden cost.
• Data risk: assets pass through a third party, with compliance cost hard to quantify.

The self-hosted cost structure

• A fixed monthly server fee (starting at tens of dollars).
• Official vendor pricing at usage, with no middle markup.
• Deploy once, reuse long term; the bigger the team, the more it amortizes.

When to switch

Once monthly AI usage reaches meaningful scale, or you need to white-label the platform for clients, the savings and control of direct self-hosting quickly outweigh the convenience of a relay.