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Eight AI Self-Hosting Mistakes That Cost Real Money

Eight specific mistakes we see customers make on their first self-hosted AI deployment, with the fixes that recover the cost.

Table of Contents

  1. The mistakes
  2. Verdict

After hundreds of customer deployments, the mistakes recur. This is the consolidated list.

TL;DR

Most expensive mistakes: not enabling FP8 (50% throughput left on table), not pinning model commits (silent regressions), over-spec'ing GPU (paying for capacity you don't use), skipping prefix caching (30-50% throughput).

The mistakes

  1. Not enabling FP8 on Blackwell — leaves 50% throughput unclaimed
  2. Not pinning model commit SHAs — quality regresses silently when HF hub tags move
  3. Over-spec'ing GPU — running embeddings-only on a 5090
  4. Skipping prefix caching — 30-50% free throughput ignored
  5. Default vLLM max-num-seqs — 256 is too high for 16-24 GB cards, OOMs under load
  6. Putting Ollama in front of paying users — production needs vLLM or TGI
  7. No eval harness — silent quality regression
  8. No fallback model — a 70B outage with no plan B is a bad afternoon

Verdict

Each mistake is fixable in a config change. Each one costs real money or quality.

Bottom line

Audit your deployment against this list. Most teams hit 3-4 of these on first ship. See build a production AI inference server.

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