How Much GPU Do You Actually Need to Self-Host an LLM?
The first question every team asks about running AI on their own hardware is some version of “what GPU do we need?” — and the honest answer is: it depends on three things you can write down before buying anything. Here’s the actual math.
The core formula
Model weights are the dominant cost. At a given precision, memory need is roughly:
VRAM ≈ parameters × bytes-per-weight + KV cache + overhead
Bytes per weight by precision:
| Precision | Bytes/weight | Quality |
|---|---|---|
| FP16 | 2.0 | Reference |
| 8-bit (Q8) | ~1.05 | Near-lossless |
| 5-bit (Q5) | ~0.65 | Very good |
| 4-bit (Q4) | ~0.55 | Good — the sweet spot for most |
| 3-bit and below | <0.45 | Noticeable degradation |
So a 27B parameter model at Q4 needs roughly 27 × 0.55 ≈ 15 GB just for weights.
Context isn’t free
Every token of conversation history lives in the KV cache, and its size scales with model architecture and sequence length. Practical rule of thumb: budget 1–4 GB for 32k–128k context depending on model and whether you use quantized KV cache (q8_0 KV is nearly free quality-wise and halves that).
This is where most DIY deployments go wrong: they size the GPU to the weights and then hit out-of-memory at long contexts or under concurrent users.
Concurrency multiplies everything
- Single user / internal tool: one GPU with weights + headroom is enough.
- Small team (2–10 concurrent): either a larger card with room for batched requests, or continuous batching via vLLM across a bigger pool.
- Production service: plan for multiple GPUs and measure throughput (tokens/sec) against your latency targets — this is where consulting pays for itself quickly.
Worked examples (2026 hardware)
- 24 GB card (RTX 3090/4090-class): up to ~32B models at Q4 with moderate context. Excellent single-team server.
- 48 GB (dual 24GB, or A6000-class): larger models or serious batching; comfortable production node.
- Multi-GPU workstation (72–96 GB+): frontier-class open weights, high concurrency, or fast fine-tuning.
The decision shortcut
- Write down the biggest model class you’d accept (e.g., “27B-class is fine”).
- Add your max context × expected concurrent users.
- Pick hardware with ~20% headroom over the total.
If step 2 pushes past your budget, quantization, shorter contexts, or a hybrid setup (local for most traffic, cloud burst for peaks) usually closes the gap far cheaper than the next GPU tier.
Sizing this for a real workload — data sensitivity, user counts, latency targets — is exactly what our on-premises LLM deployment service covers. Get in touch for a requirements assessment.
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