Cost-Effective AI: Total Cost of Ownership for LLM Deployments — A Practitioner's Calculator

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Authors: Oleh Ivchenko
Cited by: 0

Abstract

Large Language Model deployments present enterprises with a deceptively complex cost structure that extends far beyond simple API pricing. After analyzing 47 enterprise LLM implementations, organizations consistently underestimate their true Total Cost of Ownership by 340-580%. This article presents a comprehensive TCO framework incorporating direct costs, indirect costs, and hidden costs, validated against production deployments handling 2.3 million daily requests.

Fields of Study & Subjects

Artificial Intelligence Applications Cloud Computing and Resource Management Impact of AI and Big Data on Business and Society

Publication details

Journal / source
Zenodo (CERN European Organization for Nuclear Research)
Publication date
13 February 2026
Language
EN
Document type
Preprint