Total Cost of Ownership (TCO): Public API vs. Private Walled Garden (3-Year Horizon)
Public API (OpEx Model)
Private Walled Garden (CapEx Model)
While Private AI requires higher upfront investment (Capex), the linear cost growth of Public APIs (Opex) leads to a higher TCO for high-volume enterprises. The break-even point typically occurs between months 9 and 12 for mid-sized organizations.