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How we self-host our AI infrastructure for under €20/month

When you start running AI agents in production, costs can spiral quickly. A busy agent hitting GPT-4 for every request can rack up hundreds of euros a month without you noticing. Here’s how we keep costs under control while maintaining reliability.

The core principle: cheap by default

The most important decision we made early on was this: expensive models are never the default. Most requests don’t need GPT-4 or Claude Opus. They need a fast, capable model that can follow instructions and handle straightforward tasks.

We use a routing strategy:

  • Simple tasks → cheap fast model (Haiku, GPT-4o-mini)
  • Reasoning tasks → mid-tier model (Sonnet, GPT-4o)
  • Complex analysis → premium model (Opus, GPT-4)

Only the third category costs real money. And it’s rarely triggered.

The infrastructure

We run everything on a single Hetzner VPS — €7/month for a machine that handles our current load comfortably. On it we run:

  • OpenClaw — our AI agent gateway, handles routing and model selection
  • n8n — workflow automation, self-hosted
  • Nginx — serves our static sites
  • Docker — keeps everything containerised and easy to manage

Total infrastructure cost: ~€15-20/month including the VPS, domain, and a small buffer.

The AI API cost

This varies by usage, but with smart routing most clients stay under €30/month in AI API costs. We use OpenRouter which lets us switch models instantly and gives us one bill for all providers.

The lesson

Self-hosting isn’t for everyone. But if you’re building AI systems professionally, understanding the infrastructure layer saves you money and gives you control. Start simple, optimise as you grow.

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