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Customer Data Flow in Self-Hosted AI: Where Prompts Actually Go

A precise walk-through of where customer prompts travel in a self-hosted AI deployment — and where they don't.

The data-flow audit is one of the things compliance teams ask for. This is the documented answer for self-hosted AI.

TL;DR

Self-hosted prompt flow: client → reverse proxy → LiteLLM → vLLM → memory → response. No third-party hop. No persistent storage by default. Compare to hosted API: prompt leaves your network, sits on US-resident provider for 7-30 days for "abuse review".

The flow

  1. Client sends prompt over TLS to reverse proxy (Caddy)
  2. Caddy validates auth and forwards to LiteLLM
  3. LiteLLM applies rate limit + budget check, forwards to vLLM
  4. vLLM tokenises, runs forward pass on GPU memory, returns tokens
  5. LiteLLM logs request metadata (no payload by default)
  6. Response returns through chain to client
  7. Memory wiped on subsequent batch eviction

Where data is NOT stored persistently: anywhere. By default, no logs of prompt content; memory is wiped on batch eviction.

Contrast with hosted APIs

  • Hosted: prompt → US-based provider → buffered for 7-30 days → response
  • Self-hosted: prompt → your server → response. Buffer = active inference only.

Verdict

Self-hosted data flow is dramatically simpler than hosted-API flow. Document it for your DPIA / privacy review.

Bottom line

Boring data flow = easier audit. See private AI hosting.

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