AI engineering glossary · Inference serving optimisation

What is TCO (total cost of ownership)?

Total cost of ownership (also called TCO): The full cost of running a system over its life, not just the sticker price: hardware or cloud fees, power, staff time, monitoring, downtime and upgrades. It is the fair basis for comparing self-hosting with a paid API.

Level: intermediateTopic: Inference serving optimisation

Total cost of ownership: an example

A cheap-looking self-hosted model becomes dearer than an API once two engineers' time and idle GPU hours are counted.

Related terms

More Inference serving optimisation terms

Where you learn it

Total cost of ownership is part of the AI Engineering Program, which teaches it with notes, a hands-on lab and an exam. The first lesson is free.

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