Revolut says that in less than a year it’s managed to slash its [code generation] costs by roughly 90 percent by making self-hosted models its default instead of relying primarily on commercial services like Claude.
Revolut says that in less than a year it’s managed to slash its [code generation] costs by roughly 90 percent by making self-hosted models its default instead of relying primarily on commercial services like Claude.
This is going to be a trend, and why I think the IPO for Anthropic is ridiculous. Competition is massive, there is no moat.
Any sensible company, that has the captial, is hedging their bets. My place has plenty of Claude and Copilot licenses, but we also have healthy local projects going on to.
Personally I can use Claude if I want, but I tend to use the self-hosted platform (Qwen and GLM on DGX Sparks before anyone asks). Big Boss told everyone to be sensible with expenditure, so this part of me doing my bit.
Before anyone comments about “is Big Boss also saving money?”. Yes he is - the guy comes from a French farming family, he is flies economy out of choice and is well-known in our industry for sacrificing not just his bonus, but also his salary when the company has been in rocky waters over the years.
It still makes sense for very small teams where the burden of maintaining the infra is too high, but if you have 2k engineers it’s a no brainer to self host. It’s only a matter of time before open weight models can process vision as well.
I think the doomerism was all to get that moat. There’s no vendor lockin either, even if you’re using the API. You can switch between providers really easily.
You can run litellm as a proxy to not even worry about changes in the API (much).
Not to mention there isn’t public pushback against an office with a server room like there is against dedicated data centers. Assuming they are running servers and not just some desktops with GPUs.