On-Prem AI Deployment: Sovereignty Over Cost
Red Hat benchmark analysis finds memory bandwidth—not raw compute—is the main token-generation constraint, with economic break-even around 50-83% utilization and an estimated $237K annual floor for eight H100s. Sovereignty, air-gapped operation, data residency, and emerging model-weight custody controls—not lower cost—are driving hybrid and on-premises AI deployments.
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Updated Sep 15, 2026