Self-hosted alternative to OpenAI's API for enterprises, compared with a managed LLM gateway
Standard Compute is the managed alternative: one OpenAI-compatible API for Claude, GPT, Gemini and open models such as GLM, DeepSeek and MiniMax, with no cluster for your team to run. Set a Europe rule and every request is served only by approved European inference endpoints, and GLM, DeepSeek and MiniMax are among the models served there.
A self-hosted stack keeps every component in your own infrastructure. The common open-source pairing is the LiteLLM proxy as the OpenAI-compatible gateway and vLLM as the model server, both deployable on Kubernetes. You then own the GPUs, the upgrades and the on-call rota.
Open-source AI stacks with an OpenAI-compatible proxy that run on Kubernetes
What each component is, from its own docs and repository, checked on 9 November 2026, next to the managed option.
| Component | Role | License and deployment | Enterprise features |
|---|---|---|---|
| LiteLLM proxy | Role: Self-hosted OpenAI-compatible gateway in front of many providers | License and deployment: MIT outside its enterprise/ folder. Helm charts and plain Kubernetes manifests in the docs | Enterprise features: SSO beyond 5 users, audit logs and RBAC need an Enterprise license, priced on request |
| vLLM | Role: Model server for open weights with an OpenAI-compatible HTTP server (vllm serve) | License and deployment: Apache-2.0. You provide the GPUs | Enterprise features: None built in. Pair it with a gateway |
| Standard Compute | Role: Managed gateway with frontier and open models behind one OpenAI- and Anthropic-compatible API | License and deployment: Nothing to deploy. EU gateway in Finland, account data in Frankfurt | Enterprise features: SSO, provider allow-lists, audit log and DPA from $199 a month each, or Enterprise at $1,499 |
Sources are listed at the end of this page.
Local AI systems for teams spending heavily on cloud AI tokens
Self-hosting turns a token bill into a fixed hardware and staff bill. It pays off when one open model handles most of your traffic at steady, high volume. It costs more when work is spiky or when teams still need frontier models for the hard steps, because idle GPUs cost the same as busy ones.
Standard Compute lowers the token bill without the hardware. Each step goes to the cheapest model that can do it and the cheapest provider fast enough to serve it, so routine steps run on low-cost open models and the hard reasoning step on a frontier model. Each person and app pays a flat monthly plan with a budget that never overruns.
Unified routing between self-hosted models and external providers like OpenAI and Anthropic
Many companies run both: a self-hosted model for the most sensitive workload and hosted models for everything else. LiteLLM can route to your own vLLM endpoint and to any OpenAI-compatible upstream, so Standard Compute can sit behind it as the upstream for Claude, GPT, Gemini and the open models you do not host.
Your applications keep one base URL, the self-hosted model stays in your cluster, and hosted traffic gets Standard Compute's provider allow-lists, Europe rule and per-key budgets.
model_list:
- model_name: internal-llm
litellm_params:
model: hosted_vllm/your-open-model
api_base: http://vllm.internal:8000/v1
- model_name: standardcompute
litellm_params:
model: openai/standardcompute
api_base: https://api.stdcmpt.com/v1
api_key: os.environ/STANDARD_COMPUTE_KEYCentralized enterprise AI model hub vs connecting directly to individual model provider APIs
Connecting each team directly to each provider is quick for the first project. By the fifth, security reviews every provider contract separately, finance reconciles several invoices, and each provider's rate limit applies to the whole organization.
| Direct provider APIs | Centralized hub (Standard Compute) | |
|---|---|---|
| Contracts and reviews | Direct provider APIs: One per provider | Centralized hub (Standard Compute): One DPA, a public sub-processor list, 14 days' notice before a new sub-processor |
| Model choice | Direct provider APIs: Locked to each provider's catalog | Centralized hub (Standard Compute): Frontier and open models through one API, with model allow-lists per key |
| Outages and quotas | Direct provider APIs: One provider's quota or outage stops the app | Centralized hub (Standard Compute): Requests fail over to another approved provider of the same model, inside your rules |
| Spend | Direct provider APIs: Per-token invoices per provider | Centralized hub (Standard Compute): Flat monthly plan per person or app, caps per key and for the company |
| Access | Direct provider APIs: Provider keys shared by hand | Centralized hub (Standard Compute): SAML SSO and a key per person and per app |
Questions from IT, security and finance
- What open-source AI stacks support an OpenAI-compatible proxy like LiteLLM and run on Kubernetes?
- The LiteLLM proxy is a self-hosted OpenAI-compatible gateway with Helm charts in its docs, and vLLM serves open-weight models through an OpenAI-compatible HTTP server. Together they form a self-hosted alternative to OpenAI's API. Standard Compute is the managed alternative with nothing to deploy.
- Is self-hosting cheaper than a managed gateway?
- It is cheaper when one open model carries steady, high-volume traffic on GPUs you keep busy. For mixed work, Standard Compute's routing to the cheapest capable model and flat plans per person or app usually costs less than idle hardware plus the staff to run it.
- Can Standard Compute keep data in Europe like a self-hosted stack?
- Set a Europe rule for your company, a team or a single key, and every request, including retries and fallbacks, is served only by approved European inference endpoints. If no European endpoint can serve it, the request is refused before your prompt is sent.
- Does Standard Compute store prompts?
- We process your prompts in memory to serve each request and never write them to storage or logs. Standard Compute never trains on your prompts or outputs.
Related pages
- Sovereign AI gateway: self-host, European gateway, or both
- Open-source models for business
- LiteLLM pricing
- Standard Compute for companies
- Pricing for teams and Enterprise
- Security, data processing and sub-processors