Hosted LLM Gateways Charge ~5% Per Token — Here Is What You Actually Pay For
Hosted LLM routers like OpenRouter and Requesty have grown rapidly, with OpenRouter processing 25 trillion tokens per week, but they charge roughly 5% on every token routed through their infrastructure. For teams spending $500–$2,000 per engineer monthly on AI coding workloads, that fee adds up significantly alongside data-privacy concerns, since all prompts and code transit third-party servers. Self-hosted gateways eliminate the routing fee and keep data in-house, and can also apply token optimizations — such as compressing tool results — that reduce provider billing further. However, self-hosting requires managing your own provider API keys, software updates, and support, and lacks the instant access to new models that hosted marketplaces provide. The practical middle ground for most teams is routing high-volume or sensitive requests through a self-hosted proxy while reserving hosted routers for cases where broad model access and consolidated billing justify the cost.
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