Budget VPS Providers Like Contabo and Hetzner Can Run Small LLMs for Under $6/Month
Running a self-hosted large language model is feasible on low-cost VPS plans, but only with providers that offer sufficient RAM, typically 8 GB or more, at budget price points. European providers such as Contabo, Hetzner, and Netcup offer plans between $3.60 and $6.49 per month with 8–12 GB RAM, making them suitable for CPU-based LLM inference. By contrast, popular US-based $5 plans from DigitalOcean, Vultr, and Linode provide as little as 512 MB RAM, rendering them impractical for this workload. On an 8 GB setup, models like Qwen 2.5-7B, Mistral-7B, and Llama 3.1-8B can run in 4-bit quantization at roughly 4–8 tokens per second. Common motivations for self-hosting include data privacy concerns, high API costs at scale, and the desire for greater control over model selection and configuration.
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