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