RTX 3050 - Order Now
Home / Blog / Cost & Pricing / Groq API vs Self-Hosted vLLM: Speed and Cost Compared
Cost & Pricing

Groq API vs Self-Hosted vLLM: Speed and Cost Compared

Groq is fast but expensive at scale. We compare Groq API costs and speed against self-hosted vLLM on dedicated GPU servers with detailed break-even analysis.

Groq API Pricing and Speed

Groq has made headlines with blazing-fast inference speeds thanks to their custom LPU hardware. But speed comes at a price. If you need both fast inference and cost efficiency at volume, dedicated GPU hosting with vLLM often delivers a better balance. Here is the full comparison.

Groq ModelInput (per 1M)Output (per 1M)Speed (tok/s)
LLaMA 3 8B$0.05$0.08~1,200
LLaMA 3 70B$0.59$0.79~330
Mixtral 8x7B$0.24$0.24~500
Gemma 2 9B$0.20$0.20~800

Groq’s single-request latency is exceptional. But the cost per token is higher than running the same models yourself, and rate limits restrict throughput during peak usage. Compare across all providers using our GPU vs API cost comparison tool.

Self-Hosted vLLM Performance

vLLM on NVIDIA GPUs cannot match Groq’s single-stream speed, but with continuous batching it delivers impressive aggregate throughput. For production workloads serving multiple concurrent users, total throughput matters more than single-request latency.

Model on vLLMGPU SetupMonthly CostSingle SpeedBatched Throughput
LLaMA 3 8B1x RTX 5090$149/mo~100 tok/s~800 tok/s (8 concurrent)
LLaMA 3 70B2x RTX 6000 Pro 96 GB$599/mo~45 tok/s~300 tok/s (8 concurrent)
Mixtral 8x7B1x RTX 6000 Pro 96 GB$299/mo~55 tok/s~400 tok/s (8 concurrent)

Check real benchmark numbers on our tokens per second benchmark page. For setup guidance, see our self-host LLM guide.

Cost Comparison at Scale

Using LLaMA 3 70B as the benchmark (Groq’s most popular model), here is the cost comparison:

Monthly TokensGroq API ($0.67/1M blended)vLLM on 2x RTX 6000 ProSavings
1M$0.67$599API wins
100M$67$599API wins
500M$335$599API wins
1B$670$599$71 saved (11%)
2B$1,340$599$741 saved (55%)
5B$3,350$599$2,751 saved (82%)
10B$6,700$899 (4x RTX 6000 Pro)$5,801 saved (87%)

Break-even for LLaMA 3 70B: approximately 894M tokens per month. For the 8B model at $0.06 blended, break-even is higher at ~2.5B tokens/month. Use our LLM Cost Calculator for precise figures.

Calculate Your Savings

See exactly how much you’d save by self-hosting.

LLM Cost Calculator

Speed vs Cost: The Real Tradeoff

Groq’s main selling point is speed. Their LPU hardware delivers 3-10x faster single-stream inference than GPU-based solutions. But there are important nuances:

  • Single request: Groq is 3-10x faster. If you need the absolute lowest latency for individual requests, Groq wins.
  • Concurrent requests: vLLM with continuous batching handles multiple simultaneous users efficiently. Total throughput is comparable.
  • Cost per token: At volume, self-hosted is 55-87% cheaper depending on scale.
  • Rate limits: Groq imposes strict rate limits. Self-hosted has no limits.

For a deeper dive into serving frameworks, read our vLLM vs Ollama comparison.

Throughput Analysis: Batched vs Single

The real question is: do you need low latency for individual requests, or high throughput for many concurrent requests?

ScenarioGroqvLLM (2x RTX 6000 Pro)Winner
Single user, interactive chat330 tok/s45 tok/sGroq
8 concurrent users330 tok/s (rate limited)300 tok/s totalComparable
Batch processing 1M docsRate limitedUnlimitedvLLM
24/7 production API$670-$6,700/mo$599 flatvLLM

Groq excels for interactive single-user demos. For production workloads, self-hosted vLLM on dedicated GPU servers delivers better economics. Our TCO analysis covers the full picture including uptime and reliability.

When Groq Wins (and When It Doesn’t)

Groq wins when:

  • You need sub-second time-to-first-token for interactive applications
  • Monthly volume is under 500M tokens
  • You do not need data privacy guarantees

Self-hosted vLLM wins when:

  • Monthly volume exceeds 1B tokens
  • You need GDPR-compliant data processing
  • You want predictable flat-rate costs
  • You need to run multiple models or fine-tuned variants
  • Rate limits are blocking your production workload

See how Groq stacks up against all providers: GPT-4o comparison, DeepSeek comparison, and the complete API cost guide. Also consider alternatives to cloud GPU platforms like RunPod.

The Optimal Setup

Many teams use a hybrid approach: Groq for latency-critical interactive features and self-hosted vLLM for batch processing, embeddings, and high-volume production inference. This gives you the best of both worlds while keeping costs under control.

Start with our best GPU for inference guide to pick the right hardware, then explore the full cost to run a 70B model for detailed pricing.

Unlimited Inference, Zero Rate Limits

Self-host with vLLM on dedicated GPUs. Save up to 87% versus Groq at scale.

Browse GPU Servers

Need a Dedicated GPU Server?

Deploy from RTX 3050 to RTX 5090. Full root access, NVMe storage, 1Gbps — UK datacenter.

Browse GPU Servers

admin

We benchmark, deploy, and optimise GPU infrastructure for AI workloads. All data in our guides comes from real-world testing on our UK-based dedicated GPU servers.

Ready to deploy your AI workload?

Dedicated GPU servers from our UK datacenter. NVMe storage, 1Gbps networking, full root access.

Browse GPU Servers Contact Sales

Have a question? Need help?