Large Language Models: Buying or Creating a New Model?

by Staff

At the beginning of this decade, only a few groups of visionaries and enthusiasts were aware of the idea of generative AI. However, in a short period, it has become more and more clear that generative AI and in particular, methods involving Large Language Models (LLMs) will revolutionize society at large as well as for people and businesses. As an example, generative AI and LLM continue to grow, software suppliers for healthcare are eager to know more about generative AI in healthcare to integrate this technology into their clinical applications.

However, to effectively employ LLMs in any organization, several criteria must be considered. These considerations will influence the decision of whether to develop LLMs internally, leverage external closed-source models via APIs, or adopt an intermediary strategy. The best way to make these judgments isn’t obvious, but a methodical approach must include LLMs and their applications and influence make-or-buy choices by moving beyond a narrow application perspective. This blog provides all the information you require to determine whether you should buy or build an LLM.

Here are the factors to consider In LLM Make or Buy Decisions:

1. Strategic Value

It is crucial to make sure that the deployment of LLMs aligns with the broader corporate strategy when making make-or-buy choices. Organizations can develop and preserve internal expertise and proprietary information by establishing LLMs internally, resulting in the creation of an intellectual asset. As it gets harder for rivals to copy or duplicate, this intellectual property can help create a long-term competitive advantage. 

On the other hand, if LLMs are created and educated outside of the company, rivals may access them as well as a larger market, making it impossible to gain a sustained competitive edge. In addition, having internal LLM development skills helps businesses keep ahead of technology changes, which promotes innovation and a constant learning culture. 

2. Customization

More customisation is usually possible when LLMs are developed internally; this means that use cases and requirements particular to the company may be catered to. This is mostly true for fine-tuning models using distinct internal data. Personalized LLMs preserve complete ownership while offering more flexibility than off-the-shelf goods. 

While considerable customization is possible when purchasing an LLM, the freedom of a bespoke option will be greater. This may affect functioning and user experience, which may eventually affect your business.

3. Data Privacy and Security

An LLM that you create yourself is better if your company handles sensitive data since it offers more privacy and security control. You can lower the danger of data breaches and leaks while maintaining complete control over the data. 

On the other hand, outsourcing your LLM to a third party may leave your data vulnerable to security lapses or leaks. If you decide to use an outside source, make sure the vendors are compliant with all security requirements by doing a comprehensive background check on them. 

4. Time Investment

An LLM requires a lot of time and money to build from the start. Large companies may not have internal knowledge of LLMs sufficient to develop effective generative models, while smaller companies may find the setup to be too expensive. If your business depends on time for the introduction of a product or solution, the time required to set up your LLM may potentially hinder its progress. 

On the other hand, buying an LLM can help your company save time to market by giving it access to cutting-edge AI now, rather than waiting for the development stage. When time is important, it is far more easy to swiftly incorporate the technology into your organization.

5. Cost Effectiveness:

It is expensive to develop LLMs internally. It takes a large financial commitment to hire highly competent workers, who typically demand high compensation.  Additionally, internal development might take time and resources away from other key projects and delay time to market, which could result in higher opportunity costs.

Although the price of purchasing an LLM might differ based on the product you select, it is frequently far less expensive upfront than creating an AI model from the beginning. This increases its appeal to companies who would find it difficult to commit a significant amount of money upfront to developing a unique LLM. Usage-based pricing is a feature of many subscription models, making cost prediction simple. 


Ultimately, the decision of whether to create or purchase an LLM depends on the demands and obstacles unique to your company. Although creating your own model gives you more customization and control, it can be expensive and take a long time to produce. Furthermore, this solution is limited to companies that have machine learning competence on staff. In the short run, buying an LLM is more practical and frequently more affordable, but there are some compromises to be made in terms of data security and customization.

Related Articles

Leave a Comment

Yes, I would like to receive emails from The Digest Online. Sign me up!

By submitting this form, you are consenting to receive marketing emails from: New Jersey Digest. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact