Why do companies run AI on their own hardware?
The common reasons are privacy, predictable cost, and control. Data stays in-house, spending is a one-time hardware cost instead of a growing per-token bill, and the company decides which models run, when they change, and who can use them.
No rate limits or outages from a provider. Your capacity is the hardware you own.
Model stability. A cloud model can be changed or retired. A local model stays exactly the same until you decide to update it.
Lower latency on a local network, and the option to fine-tune on private data.
The costs: up-front hardware, someone to run it, and no access to the newest closed models.
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