Your data leaves the building
Public AI services process your prompts and documents on their servers, under their terms. For case files, patient records or citizen data, that is often not permitted.
Private AI means language models that run on hardware, or in a cloud account, that you control, answering from your own documents. Your data is designed to stay inside your own boundary unless you approve otherwise, your team is trained to run the system, and nobody rents the capability back to you by the seat.

The easy route to AI is a public service that reads your documents on its servers. For some organizations, that is not a trade they are allowed to make.
Public AI services process your prompts and documents on their servers, under their terms. For case files, patient records or citizen data, that is often not permitted.
Per-seat pricing looks small for a pilot and grows with every person you add. Hardware you own does not charge per question, though it has running costs of its own.
Where review is strict, a model inside your own boundary can be easier to approve than a public service. It does not replace the review.
There are three common ways to run a language model for a business. Private cloud is a variant of private AI: the same kind of open-weight model, in a cloud account you control instead of on your own hardware.
| Factor | Private AI on your hardware | Public AI service | Private cloud |
|---|---|---|---|
| Where data is processed | On hardware you own, inside your network | On the provider's servers, under its terms | In a cloud account you control, in a region you choose |
| Who maintains it | Your team, trained at handover, or a support arrangement | The provider maintains the model; you manage accounts and settings | You and the cloud provider share the work: you manage the model and access |
| Model choice | Open-weight models you can inspect and swap | The provider's models, as offered | Open-weight models, and sometimes provider-hosted models under your account terms |
| Cost drivers | Hardware, power, setup and staff time to maintain it | Usage or per-seat fees that grow with people and volume | Cloud compute hours, storage, data transfer and setup |
| Typical fit | Documents that cannot leave your premises, steady workloads, offline use | General tasks on non-sensitive data, and the fastest start | Data that may sit with a cloud provider you already use, and variable load |
The decision depends on where the model should run, which we cover in local AI vs cloud AI, and on the model and vendor, which we cover in OpenAI API or an open-weight model. For connecting a model to the software you already use, see AI integration services.
Four steps, all inside your boundary: we size the machine, install it, connect it to your files, and hand it to your people. At the end you own the hardware, the setup and the know-how.
For a small example of the design, see our internal project: a private email assistant that only drafts replies.
We match hardware to your documents, your users and your budget, and put the specification in writing before you buy anything.
Open-weight models are set up on-premises or in your own cloud tenancy, inside your network boundary.
Retrieval over your internal documents means answers come from your material, with the source cited. Fine-tuning where it earns its place.
We train your team to operate it, document how it works and step back. You are not renting a capability from us.
Public services bill by use. Private AI asks for the cost up front and in running the system, and the size of both depends on a short list of factors. We do not publish prices, because they depend on your situation.
You receive a written scope with a fixed price, or a clear rate with a ceiling, before any invoice. The hardware specification is part of it, and you own the hardware.
For a broader look at budgeting an AI project around one workflow, read how much AI automation costs.
Not automatically. Running a model yourself gives you control over where data goes and what is logged, and that control only turns into security if the system around it is looked after. A neglected on-premises server can be a weaker position than a well-run managed service.
What decides the result:
We design for least access, logging and review, and are open about what private AI does and does not change. The NIST AI Risk Management Framework is a voluntary framework for managing AI risk and a useful checklist for your own review. The same view appears in our posts on local AI vs cloud AI.
Every engagement is scoped in writing. These are the pieces it is built from.

Sized to your workload, installed on-site, and secured before it touches your documents.
Chosen for your task and licence needs, running on your hardware or in your own cloud tenancy.
The model answers from your own material and cites where each answer came from, rather than guessing.
Where general models fall short on your vocabulary or format, we adapt one to your own material.
The work around the model: intake, routing, drafting and review, wired into the tools your staff already use.
A session for your staff, and written documentation for whoever runs it, so it outlasts our engagement.
For regulated work, we design the system to support your compliance review. We do not certify compliance and we make no compliance claims on your behalf.
When a hosted tool is the honest answer.
If your data is already comfortable in a public service and you need a chat window by Friday, a hosted tool is the right call. We will tell you so on the first conversation.
Talk it through
A conversation, then a written scope with a fixed price or a clear rate and ceiling. No discovery invoice before you know what you are buying.