How to Choose an LLM Inference Provider in 2025: A Guide to Achieving the Lowest-Latency AI Inference for Open-Source LLMs

This article explains how to choose the best LLM inference provider in 2025, focusing on latency, scalability, and cost efficiency for open-source models. It outlines why specialized GPU platforms like GMI Cloud outperform self-hosted and hyperscale solutions, delivering ultra-low Time to First Token (TTFT), high throughput, and intelligent auto-scaling through its optimized Inference Engine.

What you’ll learn:
• Why TTFT and throughput are the key performance metrics for LLM inference
• The pros and cons of self-hosting vs. hyperscalers vs. specialized GPU providers
• How GMI Cloud achieves ultra-low latency through software and hardware optimization
• The role of quantization, speculative decoding, and InfiniBand networking in performance
• How automatic scaling eliminates cold-start delays and reduces operational complexity
• What to look for when evaluating LLM inference providers and pricing models
• How GMI Cloud’s Inference Engine supports leading open-source models like Llama and DeepSeek

Choosing an LLM inference provider is a critical decision that directly impacts your application's performance and cost. For teams focused on generative AI, Time to First Token (TTFT) and throughput are the most important metrics. While self-hosting is complex, specialized providers like GMI Cloud offer optimized solutions, like their Inference Engine, which is designed to provide ultra-low latency and automatic scaling for leading open-source models.
Key Takeaways:

• Performance is Key: User experience in chat applications is defined by Time to First Token (TTFT), or how quickly the first word appears. Overall cost is driven by throughput (output tokens per second).
• Provider Type Matters: Specialized GPU cloud providers often outperform both self-hosting (Build) and generic hyperscalers (Buy) in latency and cost-efficiency.
• Specialized Engines Win: Platforms built specifically for inference, such as the GMI Cloud Inference Engine, use techniques like quantization, speculative decoding, and auto-scaling to deliver superior performance.
• Hardware is the Foundation: Access to top-tier GPUs like the NVIDIA H100 and H200 connected via high-speed InfiniBand networking is essential for low-latency inference.

Why Your LLM Inference Provider Choice is Critical
In 2025, deploying an open-source Large Language Model (LLM) is no longer the primary challenge. The new bottleneck is serving that model efficiently. A poor provider choice leads to slow response times (high latency), frustrated users, and runaway operational costs.
Your application's success depends on finding a provider that balances three factors:

• Performance: How fast can the model respond and generate text?
• Cost: What is the true cost per 1,000 tokens generated, including compute and scaling?
• Scalability: Can the provider handle sudden traffic spikes without crashing or slowing down?

Key Performance Metrics That Matter
When benchmarking providers, move beyond simple price-per-hour. Focus on these critical inference metrics.

• Time to First Token (TTFT): This is the perceived latency. It measures the time from when the user sends a prompt to when they see the first token (or word) of the response. A low TTFT (sub-500ms) is crucial for real-time, conversational AI.
• Inter-Token Latency (Throughput): This measures the time between output tokens (e.g., tokens per second). High throughput is essential for generating long responses quickly and reduces the overall cost of the generation.
• Cold Starts: This measures how long it takes for a model to "wake up" and serve a request when it's idle. Long cold starts (multiple seconds or even minutes) can destroy the user experience. A good provider should have near-zero cold starts for active models.

The "Build vs. Buy" Dilemma: Comparing Provider Types
You have three main options for serving your LLM, each with significant trade-offs in performance and complexity.

Self-Hosting (The "Build" Option)
This involves managing your own GPU infrastructure using tools like vLLM, TGI, or TensorRT-LLM.

• Pros: Complete control over the hardware and software stack.
• Cons: Extremely complex. You are responsible for server management, scaling, framework optimization, and hardware procurement. Without a dedicated MLOps team, self-hosted solutions are often slower and more expensive than specialized "Buy" options.

Hyperscalers (AWS, GCP, Azure)
This involves using generic compute instances (like AWS SageMaker or GCP Vertex AI) from major cloud providers.

• Pros: Integrates with your existing cloud services.
• Cons: Often cost-prohibitive for high-volume inference. Provisioning can be slow, and their generic solutions are not optimized for the lowest-latency inference, leading to higher TTFT and throughput costs.

Specialized GPU Cloud Providers (The "Optimized Buy" Option)
This category includes providers that focus exclusively on high-performance GPU compute for AI workloads.

• Pros: Designed for peak performance, often offering lower costs, instant access to top-tier GPUs, and managed environments that eliminate operational complexity.
• Cons: May require moving workloads from your primary cloud.

This is where providers like GMI Cloud excel, offering a purpose-built solution that solves the core problems of latency and cost.

A Solution: GMI Cloud for Low-Latency Inference
For teams that need the performance of a highly optimized stack without the complexity of building it themselves, a specialized provider is the clear choice.
GMI Cloud, an NVIDIA Reference Cloud Platform Provider, is engineered specifically for this challenge. The platform provides the lowest-latency AI inference for open-source LLMs through its specialized GMI Cloud Inference Engine.
This solution is designed to deliver peak performance by combining three key elements:

• Optimized Inference Engine: The engine provides "ultra-fast, low-latency inference deployment" for leading open-source models like Llama 4, Llama 3.3, and DeepSeek V3.1. It uses advanced techniques like quantization and speculative decoding to boost speed and reduce compute costs.
• Intelligent, Automatic Scaling: Unlike manual scaling, the GMI Cloud Inference Engine features "intelligent auto-scaling that adapts in real time to demand". This ensures "stable throughput, ultra-low latency and consistent performance" even under fluctuating traffic, effectively eliminating cold-start problems.
• Top-Tier Hardware: GMI Cloud provides on-demand access to the latest NVIDIA GPUs, including the H100 and H200. This hardware is connected with high-throughput InfiniBand networking to eliminate bottlenecks, a feature often missing from generic cloud offerings.

By combining a purpose-built software engine with best-in-class hardware, GMI Cloud delivers a managed solution that directly addresses the most critical inference metrics: low TTFT, high throughput, and seamless scaling.

How to Make Your Final Decision: A Checklist
Use these questions to evaluate providers:

• Model Support: Does the provider offer dedicated, optimized endpoints for the specific open-source models you need (e.g., Llama 3.1, DeepSeek, Mistral)?
• Performance Benchmarks: Ask for benchmarks. What is the provider's real-world TTFT and tokens/second for your target model at your expected batch size?
• Cost Model: Is it a flexible, pay-as-you-go model? Or does it require long-term commitments? Understand the total cost per million tokens, not just the hourly GPU price.
• Scaling Mechanism: Is scaling automatic and instant, like with the GMI Cloud Inference Engine? Or will you need to manually provision new instances, like in GMI's Cluster Engine?
• Developer Experience: How easy is it to deploy a new model? Do they provide a simple API, expert support, and real-time monitoring?

Frequently Asked Questions (FAQ)

What is the most important metric for LLM inference?‍

Answer: It depends on your application. For interactive, conversational AI (like a chatbot), Time to First Token (TTFT) is most important for perceived speed. For offline batch processing or long-form content generation, throughput (tokens per second) is more important as it dictates the total cost.‍

What is GMI Cloud?‍

Answer: GMI Cloud is a GPU-based cloud provider that delivers high-performance, scalable infrastructure for training, deploying, and running artificial intelligence models.‍

How does GMI Cloud optimize for low-latency inference?‍

Answer: GMI Cloud uses its Inference Engine, which is a platform purpose-built for real-time AI inference. It combines intelligent auto-scaling, software optimizations like quantization, and top-tier hardware like NVIDIA H200 GPUs with InfiniBand networking to ensure ultra-low latency and stable throughput.

What open-source models does the GMI Cloud Inference Engine support?

Answer: GMI Cloud's Inference Engine supports leading open-source models and provides dedicated endpoints. Examples include DeepSeek V3.1, Llama 4, DeepSeek R1, and Llama 3.3 70B.

Is it cheaper to self-host LLMs?‍

Answer: Not necessarily. While you avoid provider markups, you are responsible for all hardware costs, operational overhead, and complex optimization. Specialized providers like GMI Cloud can be more cost-effective because their optimized systems (like the Inference Engine) can run models more efficiently, reducing the total compute time and cost per token.