TCO Comparison

Sovereign AI economics for high-volume regulated workloads.

A modeled comparison of owned sovereign AI infrastructure, rented GPU capacity, and managed public AI APIs for a 1 trillion token per month banking workload.

Modeled workload 1T tokens/month

70% input and 30% output with an 80% fast-tier and 20% flagship routing mix.

Owned sovereign lane ₹30.22 Cr Year 1

Includes N+1 datacenter pod, annual operating team, Federis license, and SI implementation.

Recurring advantage ₹9.24 Cr Yr 2+

Compared with ₹87.86 Cr for Gemini Enterprise API and ₹110.82 Cr for OpenAI Enterprise API.

Comparison basis

The analysis models a mid-tier Indian bank processing 1 trillion tokens per month with context-heavy RAG traffic, tiered model routing, N+1 high availability, infrastructure operations, and enterprise-volume API discounts.

Why sovereign mode changes the economics

At sustained token volume, public API spend scales linearly with usage. An owned sovereign lane shifts the bank toward reusable GPU capacity, controlled local model execution, and recurring costs dominated by operations, platform license, and hardware upkeep rather than per-token API invoices.

Modeled Assumptions

Workload and infrastructure basis

The comparison is scoped to a high-volume banking workload with enterprise operating assumptions.

Workload

1 trillion tokens/month

Traffic mix

70% input / 30% output

Routing mix

80% fast utility / 20% flagship reasoning

Exchange rate

₹95.67 per USD

Owned hardware

3 HGX B300 servers, 24 GPUs total

Availability

N+1 high availability pod

Savings with an owned sovereign lane

Year-1 savings vs Gemini API 66%

₹30.22 Cr owned sovereign TCO vs ₹89.86 Cr Gemini Enterprise API.

Year-1 savings vs OpenAI API 73%

₹30.22 Cr owned sovereign TCO vs ₹112.82 Cr OpenAI Enterprise API.

Year-2+ savings vs Gemini API 89%

₹9.24 Cr recurring sovereign cost vs ₹87.86 Cr Gemini Enterprise API.

Year-2+ savings vs OpenAI API 92%

₹9.24 Cr recurring sovereign cost vs ₹110.82 Cr OpenAI Enterprise API.

Master TCO Matrix

Owned sovereign infrastructure versus public API economics

All values are shown in INR crore and follow the discounted enterprise API scenario.

Scenario Capex Annual opex API cost Federis license SI implementation Year 1 TCO Yr 2+ recurring
Owned sovereign AI infrastructureOn-prem N+1 pod with dedicated operations team and Federis control plane. ₹16.48 Cr ₹5.22 Cr ₹0 ₹4.02 Cr ₹4.50 Cr ₹30.22 Cr ₹9.24 Cr
Rented cloud GPU infrastructureGPU capacity is rented; sovereignty depends on provider and deployment terms. ₹0 ₹23.37 Cr ₹0 ₹4.02 Cr ₹2.50 Cr ₹29.89 Cr ₹27.39 Cr
Gemini Enterprise APIUses negotiated enterprise-volume pricing under the modeled workload assumptions. ₹0 ₹1.76 Cr ₹86.10 Cr ₹0 ₹2.00 Cr ₹89.86 Cr ₹87.86 Cr
OpenAI Enterprise APIUses negotiated enterprise-volume pricing under the modeled workload assumptions. ₹0 ₹1.76 Cr ₹109.06 Cr ₹0 ₹2.00 Cr ₹112.82 Cr ₹110.82 Cr

Public API Cost Reference

Rate-card and negotiated API exposure

The comparison includes both official blended rates and aggressive enterprise-volume discounts.

Gemini official-rate model ₹132.25 Cr/year

Modeled blended rate of $0.324 per million tokens.

OpenAI official-rate model ₹313.19 Cr/year

Modeled blended rate of $0.82 per million tokens.

Gemini negotiated model ₹86.10 Cr/year

Modeled enterprise discount for a 12 trillion token/year contract.

OpenAI negotiated model ₹109.06 Cr/year

Modeled enterprise discount for a 12 trillion token/year contract.

Figures are directional and should be refreshed during procurement using current vendor rate cards, negotiated commercial terms, hardware pricing, depreciation policy, and datacenter costs.

Strategic result

The modeled Year-1 owned sovereign TCO is materially below discounted managed API alternatives, while Year-2 recurring economics are even stronger. The same infrastructure decision also supports data localization, auditability, and operational independence.

  • Best suited to sustained, high-volume workloads where token usage is predictable and data cannot leave approved environments.
  • Federis remains the governance control plane; GPU, storage, policy, identity, and observability systems stay pluggable and separately deployable.

Model your own workload

Share your token volume, model mix and hosting constraints, and we will rework this comparison with your numbers.