Implementing a Self-Hosted LLM

Large Language Models (LLMs) are transforming the way companies operate, enabling powerful AI-driven automation, content generation, and decision support.

This article is an updated version of the original guide we published in 2024. It reflects the latest advancements in self-hosted LLM deployment, including new model options, improved infrastructure recommendations, and enhanced security practices tailored for 2025. Self-Hosted LLM 2024 Arpay.ee


1. Choosing the Right Infrastructure

  • On-Premises
    • Best for organizations with strict compliance requirements.
    • Requires high-performance hardware (GPUs, storage, networking).
  • Cloud
    • Scalable and easier to manage.
    • Providers: AWS, Azure, Google Cloud.

2. Selecting the Right LLM

  • Llama 2 (Meta) – Available in multiple sizes.
  • Mistral 7B – Efficient and powerful.
  • Falcon (TII) – Optimized for multilingual applications.

3. Setting Up the LLM

Install dependencies:

pip install torch transformers vllm fastapi

Download and load the model:

from fastapi import FastAPI

import torch

from transformers import AutoModelForCausalLM, AutoTokenizer

app = FastAPI()

modelname = “meta-llama/Llama-2-7b”

tokenizer = AutoTokenizer.frompretrained(modelname)

model = AutoModelForCausalLM.frompretrained(modelname, torchdtype=torch.float16).cuda()

@app.post(“/generate”)

def generatetext(prompt: str):

    inputs = tokenizer(prompt, returntensors=”pt”).to(“cuda”)

    output = model.generate(inputs)

    return {“response”: tokenizer.decode(output[0])}

Run the API:

uvicorn app:app –host 0.0.0.0 –port 8000


Deployment Checklist

Infrastructure

  • [ ] Choose between on-premises or cloud.
  • [ ] Ensure GPU availability and sufficient RAM.
  • [ ] Set up secure networking and storage.

Model Setup

  • [ ] Select appropriate LLM (e.g., Llama 2, Mistral 7B).
  • [ ] Install required Python packages.
  • [ ] Download and test model locally.

API Deployment

  • [ ] Build FastAPI service.
  • [ ] Test endpoints with sample prompts.
  • [ ] Configure uvicorn for production (e.g., use gunicorn with workers).

Monitoring & Logging

  • [ ] Integrate logging (e.g., loguru, structlog).
  • [ ] Set up performance monitoring (e.g., Prometheus, Grafana).
  • [ ] Enable request tracing and error reporting.

🔐 Security Tips

  • Data Encryption
    • Use TLS for all API traffic.
    • Encrypt sensitive data at rest and in transit.
  • Access Control
    • Implement Role-Based Access Control (RBAC).
    • Use API keys or OAuth2 for authentication.
  • Compliance
    • Ensure GDPR, HIPAA, or other relevant compliance.
    • Maintain audit logs and data retention policies.
  • Model Safety
    • Filter harmful or biased outputs.
    • Regularly update models and dependencies.

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